In class, we heard about Loss-leader Pricing, where we set the price of a product below its usual (or profitable) price. What did we hear is the goal of this pricing approach?
a.
To determine if the market is Price Elastic or not.
b.
To attract customers in with the hope they will buy other profitable products.
c.
To sell as many products as possible early in the Product Life Cycle.
d.
To get distributors "on board" with our new offering.
e.
We heard that any of the above are possible goals for this pricing approach.
Answer: To attract customers in with the hope they will buy other profitable products.