Loss-Leader Pricing Refers to

question 35

Multiple Choice

Loss-leader pricing refers to

• A) a pricing method where the price the seller charges is below the actual cost to make the product.
• B) setting a low initial price and gradually but consistently increasing that price so as not to antagonize the consumer.
• C) deliberately selling a product below its customary price, not to increase sales, but to attract customers' attention in hopes that they will buy other products as well.
• D) a method of pricing based on a product's tradition, standardized channel of distribution, or other competitive factors.
• E) pricing a product between 8 and 10% lower than nationally branded competitive products.