To attract customers into a store, Safeway advertises its milk at a lower cost, hoping that customers will purchase other groceries as well. This pricing strategy is called:
A) price lining.
B) special-event pricing.
C) differential pricing.
D) comparison discounting.
E) price leader pricing.

Question

Quizplus · Accepted Answer

Price leader pricing is a strategy where a product is sold at a low price to attract customers, with the expectation that they will buy additional items at regular prices.

To Attract Customers into a Store, Safeway Advertises Its Milk