Smart Home,a retailer for consumer electronics,sells a reputed brand's desktops at near cost price.These desktops are located at the end of the store so that the customers notice the other products in the store before they pick the desktop.As a result the sales of printers,USB devices,web cameras,and other electronic products in the store have increased.This is an example for _____ pricing technique.

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Quizplus · Accepted Answer

This scenario describes the use of loss leaders pricing technique, where a product is sold at or below cost price to attract customers to the store, and once the customers are in the store, they are exposed to other higher-margin products. In this case, the desktops are the loss leaders as they are sold at near cost price, and the increase in sales of other electronic products in the store suggests that customers are buying more than just the desktops.

Smart Home,a Retailer for Consumer Electronics,sells a Reputed Brand's Desktops