A retailer advertises a coffee maker at a below-cost price to attract customers and stimulate the purchase of nonsale merchandise. The firm is engaged in what pricing strategy?
A) Predatory
B) Bait-and-switch
C) Loss leader
D) Deceptive

Question

Quizplus · Accepted Answer

This is known as a loss leader pricing strategy, where a product is sold at a loss to attract customers in the hope that they will purchase other, more profitable products.

A Retailer Advertises a Coffee Maker at a Below-Cost Price