Loss-leader pricing refers to
A)a pricing method where the price the seller charges is below the actual cost to make the product.
B)setting a low initial price and gradually but consistently increasing that price so as not to antagonize the consumer.
C)deliberately selling a product below its customary price, not to increase sales, but to attract customers' attention in hopes that they will buy other products as well.
D)a method of pricing based on a product's tradition, standardized channel of distribution, or other competitive factors.
E)pricing a product between 8 and 10 percent lower than nationally branded competitive products.

Question

Quizplus · Accepted Answer

Loss-leader pricing is a pricing strategy where a product is deliberately sold below its customary price in order to capture the attention of customers and create buzz with the hope that they will purchase other, higher-priced products as well. It is typically used as a promotional tactic to draw customers into a store or website. The seller may incur a loss on the product being sold at a discounted price, hence the term "loss-leader."

Loss-Leader Pricing Refers to