A key difference between a loss leader and leader pricing is based upon whether ________.
A) the goods are sold above cost
B) bait advertising is used as part of the retailer's strategy
C) sufficient customer traffic is generated
D) competing retailers are hurt by the action

Question

Quizplus · Accepted Answer

The key difference between a loss leader and leader pricing is that in loss leader pricing, the goods are sold below cost to attract customers, while in leader pricing, the goods are sold at cost or slightly above cost to generate traffic and sales of other products.

A Key Difference Between a Loss Leader and Leader Pricing