Both loss leaders and leader pricing seek to _____.
A)maximize a retailer's return on investment
B)increase early recovery of cash for a retailer
C)reduce marginal competitors through aggressive pricing practices
D)increase store traffic and sales of regular markup merchandise

Question

Quizplus · Accepted Answer

Both loss leaders and leader pricing are strategies used to attract customers to a store and increase store traffic and sales of regular markup merchandise. Loss leaders involve selling a few products at a steep discount to attract customers to the store, where they may then buy other products at regular prices. Leader pricing involves offering selected products at a lower price than competitors to attract customers to the store, where they may then buy other products at regular prices. Both strategies aim to increase store traffic and sales of regular markup merchandise.

Both Loss Leaders and Leader Pricing Seek to _____