Identify a true statement about loss-leader pricing.
A) It captures as much of the market as possible through permanent rock-bottom prices.
B) Retailers place a handful of items that are priced temporarily below cost at the back of their store.
C) Retailers use a high pricing strategy to send consumers a message about the exclusivity of a product.
D) It is applicable on all products sold in a department store.

Question

Quizplus · Accepted Answer

Loss-leader pricing involves temporarily pricing certain items below cost to attract customers into the store, often placing these items at the back to encourage browsing and additional purchases.

Identify a True Statement About Loss-Leader Pricing