What is “driving traffic”? What are the two pricing strategies associa

QUESTION

What is “driving traffic”? What are the two pricing strategies associated with driving traffic?

What will be an ideal response?

ANSWER

Answer: Driving traffic means attracting customers. Stores use loss leaders, products advertised at or below cost, to attract customers. Low pricing can also be used to increase market share, the percentage of the market of total sales for a particular product or good.
Explanation: Attracting customers—also known as “driving traffic”—is a principal function of pricing, which is why retailers often hold sales. Sometimes stores will use certain products as loss leaders, products advertised at or below cost to attract customers. Low pricing can also be used to increase market share, the percentage of the market of total sales for a particular product or good.