The owner of a neighbourhood hardware store has decided to sell a set of three padlocks for $5.He hopes the below-cost price for the locks will attract current and new customers who will also buy regularly priced items.The owner is encouraging store patronage through which of the following?
A)variable maintenance
B)psychological pricing
C)price maintenance
D)leader pricing

Question

Quizplus · Accepted Answer

Leader pricing involves selling a product near or even below cost to attract business.

The Owner of a Neighbourhood Hardware Store Has Decided to Sell