Every week,Keller's Grocery runs a weekly ad in the newspaper touting its sale prices on a number of products.For example,this week the store is selling cherries for $1.50/pound and boneless chicken breasts for 99 cents/pound.Keller's sells these products at a below-market price to lure customers into the store in hope that while they are in the store to buy chicken and cherries,they will also buy other grocery items that have a much higher markup.The store is using:
A) price lowballing.
B) price maintenance.
C) price lining.
D) leader pricing.
E) functional pricing.

Question

Quizplus · Accepted Answer

Leader pricing involves selling a product near or even below cost in the hope that shoppers will buy other items once they are in the store.

Every Week,Keller's Grocery Runs a Weekly Ad in the Newspaper