The Wine Cabinet, a store that features fine wines from all over the world, consistently prices The Complete Wine Course at $10.99. It sells this book at a price below the store's cost of $25.95 in order to attract wine shoppers to its store and increase its wine sales. In terms of pricing strategy used, this book would be called a:
A) psychological draw.
B) motivational cue.
C) bargain indicator.
D) loss leader.
E) transactional draw.

Question

Quizplus · Accepted Answer

A loss leader is a pricing strategy where a product is sold at a price below its market cost to stimulate other sales of more profitable goods or services. In this case, The Complete Wine Course is sold below cost to attract customers to the store, hoping they will purchase additional items at a profit.

The Wine Cabinet, a Store That Features Fine Wines from All