If Tiger Mart advertises a 2-liter bottle of Pepsi for 89 cents to generate store traffic that will increase the purchasing of other items at regular prices, the grocer is using
A)reference pricing.
B)a price leader.
C)special-event pricing.
D)comparison discounting.
E)professional pricing.

Question

Quizplus · Accepted Answer

Tiger Mart is using a price leader strategy by advertising a highly discounted price to attract customers to their store in hopes that they will purchase other items at full price. This strategy is commonly used to increase store traffic and boost overall sales.

If Tiger Mart Advertises a 2-Liter Bottle of Pepsi for 89