Question

As the president of Chip City a chain of home electronic stores, you are struggling with ways to attract customers to your stores. One employee suggests temporarily marking down a few items in the store below cost to drive traffic into the store. This employee is suggesting you use a(n) _____ strategy.

Answer 1

Answer:

Loss-leader pricing

Explanation:

Loss leader pricing can be defined as a marketing strategy that entails selecting some retail products that is going to be sold below cost. This means that the retailer will not make any profit from the products being sold because the goods are being sold below the actual price.

This is done in order to get customers in the door. It is a method of enticing buyers to purchase your products.

This stategy attracts news customers because goods are being sold at significant discount to market price.