When supermarkets and department stores drop the price on well-known brands to stimulate store traffic,this is called ________.
A) EDLP
B) loss-leader pricing
C) special-event pricing
D) net pricing
E) none of the above

Question

Quizplus · Accepted Answer

Dropping the price on well-known brands to stimulate store traffic is a classic example of loss-leader pricing. This tactic involves offering a product at a lower price than the competition to attract buyers, with the hope that they will purchase additional products with higher profit margins.

When Supermarkets and Department Stores Drop the Price on Well-Known