Some retailers advertise items at very low prices or even below cost just to get customers into the store. This ________ strategy is prohibited in some states.
A) bait-and-switch
B) price lining
C) predatory pricing
D) loss leader pricing
E) dynamic pricing

Question

Quizplus · Accepted Answer

This is referring to a loss leader pricing strategy in which retailers offer a product at a price lower than its cost in order to attract customers and increase foot traffic. Some states have laws prohibiting this practice because it can potentially harm smaller competitors who cannot afford to offer such low prices.

Some Retailers Advertise Items at Very Low Prices or Even