Question

To attract customers into a store, Safeway advertises its milk at less than cost, hoping that customers will purchase other groceries as well. This pricing strategy is called a. comparison discounting. b. special-event pricing. c. differential pricing. d. price or loss leader pricing. e. price lining.

Answer 1

D. Price or Loss leader pricing

Step-by-step explanation:

A loss leader (also leader) is a pricing strategy where a product is sold at a price below its market cost to stimulate other sales of more profitable goods or services. ... The loss leader is offered at a price below its minimum profit margin—not necessarily below cost.