A firm sells key items in its product assortment at less than their usual profit margins. This illustrates the use of
A) price lining.
B) leader pricing.
C) multiple-unit pricing.
D) variable pricing.

Question

Quizplus · Accepted Answer

Leader pricing is a pricing strategy in which a firm sells key items in its product assortment at less than their usual profit margins to attract customers and increase sales of other products.

A Firm Sells Key Items in Its Product Assortment at Less