Loss-leader pricing entails Blank______.

Question

Multiple choice question.

summing total units costs and adding a fixed percentage or fee to arrive at a price

selling a product below its customary price to attract attention to it

reducing prices in a systematic way over time based on the learning effect

setting a price at a certain level based on factors like tradition or a standardized channel of distribution

Answer 1

Loss-leader pricing entails selling a product below its customary price to attract attention to it.