CDz, your local music and video store, always keeps a few items on sale at prices that are actually below cost in order to attract a high volume of customers who will also buy higher-priced merchandise. What pricing tactic is CDz using?
A) loss leader pricing
B) exception pricing
C) bait and switch pricing
D) penetration pricing

Question

Quizplus · Accepted Answer

CDz is using the pricing tactic of a loss leader, where they offer a few items at below cost to attract customers who will then likely purchase higher-priced merchandise.

CDz, Your Local Music and Video Store, Always Keeps a Few