The owner of a flower shop decided to sell a dozen red roses for $13.50.He hopes the below-cost price for the roses will attract current and new customers who will also buy regularly priced items.The manager is encouraging store patronage through which of the following?

Question

Quizplus · Accepted Answer

Leader pricing is a strategy where a business offers a product at a below-market price to attract customers, with the hope that they will purchase other regularly priced items along with the discount product. In this case, the owner of the flower shop is offering a dozen red roses at a price below the cost, which can be considered as leader pricing.

The Owner of a Flower Shop Decided to Sell a Dozen