Some retailers advertise items at very low prices or even below cost just to get customers into the store. The rationale for implementing this ________ strategy is the belief that once a customer is in the store she will buy the advertised item as well as other items at regular prices.
A) bait-and-switch
B) price lining
C) predatory pricing
D) loss-leader pricing
E) keystoning

Question

Quizplus · Accepted Answer

This is a classic example of a loss-leader pricing strategy, where a retailer sells an item at a loss to attract customers into the store with the hope that they will purchase other, higher-priced items while they are there.

Some Retailers Advertise Items at Very Low Prices or Even