In which pricing technique does a retailer advertise and sell key items in the product assortment at less than the usual profit margin?
A) price lining
B) leader pricing
C) odd pricing
D) bait-and-switch advertising

Question

Quizplus · Accepted Answer

Leader pricing is a technique in which a retailer advertises and sells certain popular items at a lower price than the usual profit margin. This is meant to attract customers into the store, with the expectation that they will also purchase other items at the regular price, thereby increasing the retailer's overall profits. Price lining refers to grouping products at different price points, odd pricing involves setting prices that end in numbers other than zero or five, and bait-and-switch advertising is a deceptive practice in which a retailer advertises a product at a low price to attract customers, but then tries to sell them a more expensive product instead.

In Which Pricing Technique Does a Retailer Advertise and Sell