If Kroger food stores advertise 2-liter bottles of Pepsi for 89 cents to generate store traffic so that shoppers will purchase other items at regular prices, the grocer is using
A) reference pricing.
B) a price leader.
C) special-event pricing.
D) comparison discounting.
E) professional pricing.

Question

Quizplus · Accepted Answer

Kroger is using a price leader strategy by advertising the 2-liter bottles of Pepsi at a very low price to attract customers to the store. The idea behind this strategy is that customers who come to the store to buy the cheap Pepsi will also buy other items at regular prices, resulting in increased sales for the store.

If Kroger Food Stores Advertise 2-Liter Bottles of Pepsi for 89