To attract customers into a store, Safeway advertises its milk at ...

[james0929]

To attract customers into a store, Safeway advertises its milk at less than cost, hoping that customers will purchase other groceries as well. This pricing strategy is called
 A) price lining.
  B) special-event pricing.
  C) differential pricing.
  D) comparison discounting.
  E) price leader pricing.

Question 2

A product is a price leader when
 A) it is sold at the highest price.
  B) its price maximizes profits.
  C) an increase or decrease in price leads to increased revenue or lower costs.
  D) it is sold at less than cost in the hope that sales of other products will increase.
  E) its price leads the industry in sales.

[shayla]

Answer to Question 1

E

Answer to Question 2

D

[james0929]

Excellent

[kusterl]

Gracias!