Loss leader pricing is
(A) pricing a product just below its main competitor
(B) pricing a product at or below cost to get customers into a store with the hope of selling them other more profitable product
(C) based on keeping all costs involved, such as manufacturing, as low as possible
(D) based on the value that customers perceive the product holds
(E) pricing a product as part of a bundle to get rid of unwanted inventory
Answer: Loss leader pricing is a sales promotion technique that is used to get people into a store with the hope that they will buy more expensive products, so choice B is correct.