Walgreens Drugstores advertises that its Tylenol prices are "the lowest in town" in order to stimulate sales of other products along with Tylenol. This is an example of:
A) skimming.
B) value in use pricing.
C) bait pricing.
D) price lining.
E) leader pricing.

Question

Quizplus · Accepted Answer

This is an example of leader pricing, where a lower price is set for a particular product to attract customers to come to the store and buy other products as well. The lower price for Tylenol serves as a leader to attract customers to the store, where they may end up buying other products along with Tylenol.

Walgreens Drugstores Advertises That Its Tylenol Prices Are "The Lowest