The owner of a neighborhood hardware store has decided to sell a set of three padlocks for $5.He hopes the below-cost price for the locks will attract current and new customers who will also buy regularly priced items.The owner is encouraging store patronage through:
A) deceptive pricing
B) incentive pricing
C) pricing lining
D) cumulative pricing
E) leader pricing

Question

Quizplus · Accepted Answer

Leader pricing involves selling a product near or even below cost to attract business.

The Owner of a Neighborhood Hardware Store Has Decided to Sell