When a chain store sells certain products below cost to attract customers, it is practicing a loss-leader price tactic.

Name: When a chain store sells certain products below cost to attract customers, it is practicing a loss-leader price tactic.
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Question

Quizplus · Accepted Answer

A loss-leader pricing strategy involves selling a product at a price that is not profitable (below cost) to attract customers, with the expectation that those customers will also purchase other, more profitable items.

When a Chain Store Sells Certain Products Below Cost to Attract