The office supply store was selling two-drawer file cabinets for $20,which is a below-market price,to lure customers into the store in hopes that while they are in the store to buy a file cabinet they will also buy other items that have a much higher markup.What is the office supply store using?

Question

Quizplus · Accepted Answer

The office supply store is using leader pricing, which involves setting a low price for a particular product to attract customers and increase sales of other, higher-margin products in the store. In this case, the store is offering the file cabinets at a below-market price to entice customers to come in and browse, with the hope that they will purchase other items as well.

The Office Supply Store Was Selling Two-Drawer File Cabinets for $20,which