Question

A store owner wants to increase traffic in his grocery store. he reduces the pricing of milk below costs. this practice would be known as a______ strategy. multiple choice question.

a. everyday low
b. high/low
c. odd
d. los leader

Answer 1

A loss leader strategy is when a store sells a product below cost to attract customers and increase traffic to the store.

Step-by-step explanation:

The correct answer is d. loss leader.

A loss leader strategy is when a store sells a product below cost in order to attract customers and increase traffic to the store. In this case, the store owner reduces the pricing of milk below costs to encourage customers to come to the grocery store. By offering a highly discounted product like milk, the store hopes that customers will also purchase other items while they are there, making up for the loss on the milk.

Using loss leader strategies can be an effective way for businesses to increase traffic and sales in their stores.