Which of the following represents the pricing goal of attracting custo

QUESTION

Which of the following represents the pricing goal of attracting customers?

A) matching the price on soft drinks that the big box store down the street charges
B) pricing soft drinks low to make them available to people who otherwise could not afford them
C) setting a higher price on soft drinks to give the illusion of high quality
D) aiming for a 27 percent return on investment on soft drinks
E) selling soft drinks at a loss to increase market share

ANSWER

Answer: E
Explanation: E) 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.