The promotional pricing technique adopted by retailers and lowering selling prices of well-known brands is classified as ___________?

Correct answer: A. loss leader pricing

  • A. loss leader pricing
  • B. cash rebates
  • C. special customer pricing
  • D. special event pricing

Explanation

Loss-leader pricing reduces the price of a well-known product to attract customers, who may then purchase other profitable items. Rebates return money after purchase rather than simply marking down the advertised product.

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