If Tiger Mart advertises a 2-liter bottle of Pepsi for $1.29 cents to generate store traffic that will increase the purchasing of other items at regular prices, the grocer is using
A) reference pricing.
B) a price leader.
C) special-event pricing.
D) comparison discounting.
E) professional pricing.

Question

Quizplus · Accepted Answer

Tiger Mart is using a price leader strategy by advertising a popular item, the 2-liter bottle of Pepsi, at a discounted price to attract customers to their store. The hope is that customers will come for the deal on Pepsi and end up purchasing other items at regular prices, ultimately increasing revenue.

If Tiger Mart Advertises a 2-Liter Bottle of Pepsi for $1.29