If a supermarket runs an ad for a gallon of milk in the local newspaper at a price that many consumers will recognize as a low price for this product, this is an example of:
A) Reference pricing
B) Price lining
C) Bundle pricing
D) Leader pricing
E) Bait pricing

Question

Quizplus · Accepted Answer

Leader pricing is when a product is advertised at a low price to attract customers into the store, with the hope that they will purchase higher-priced items as well. This is often used for staple products like milk or bread.

If a Supermarket Runs an Ad for a Gallon of Milk