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What is the term for a pricing strategy where a business sets low prices on essential items to drive foot traffic into stores?

AValue Pricing
BCaptive Pricing
CBait and Switch Pricing
DLoss Leader Pricing

Explanation

* Loss Leader Pricing sells selected popular products at or below cost to attract retail traffic.
* Retailers offset initial margins when shoppers purchase other higher-margin items during the visit.
* It is widely used by supermarkets and department stores.

Exam Relevance
  • Topic: Pricing Strategy
  • Subtopic: Promotional Pricing Tactics
Submitted by: mcqstutor Team More Marketing MCQs →

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