Loss leader
This section of the IB Business Management syllabus considers the the appropriateness of the loss leaders as a pricing strategy (AO3).Loss leader pricing consist of pricing a product below its cost of production so as to attract customers to also purchase other items (with their higher profit margins) at the same time. For example, a grocery store might reduce the price of a particular product from $2.99 to just $0.99...
To access the contents of this site, you must subscribe.