To attract customers into a store, Safeway advertises its milk at less than 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

This pricing strategy is known as price leader pricing, where a product is priced extremely low to attract customers who are likely to make additional purchases while in the store.

To Attract Customers into a Store, Safeway Advertises Its Milk