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

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