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Marketing & Web Long-Range PlanningLoss Leader Pricing

Loss Leader - Using This Pricing Strategy - Loss Leaders In Retail
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Marketers should beware that some governmental agencies view loss leaders as a form of predatory pricing and thus consider it illegal.

Loss Leaders Items priced below cost to lure more customer traffic. Loss leaders are restricted by state minimum-price laws.
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loss leader
a product offered at less than cost to attract purchasers to a store so that they will buy other items at regular prices
loss leader pricing ...

Loss Leader - A type of product that is sold at a loss to help companies generate new customers. Companies hope the new customers gained from this type of sale will generate profits on future purchases.

Loss leader A retail item advertised at an invitingly low price in order to attract customers for the purchase of other, more profitable merchandise.

Leader Pricing see Loss Leader Pricing. Leads see Sales Leads. Learning fixed behavioural changes resulting from an individual's experiences.

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Retailers will often use highly advertised products as loss leaders, and thus advertising may depress retail prices of products.

Samples: When the car dealer lets you take the car you are considering buying for a drive, what is that? It is a free sample. Gourmet grocers set out free food all day, as does Costco. Why? Free samples are inexpensive loss leaders that create sales.

Loss Leader A product sold at a loss to get customers to begin buying. Loyalty Customer loyalty is measured as Retention. A loyal customer is one who keeps buying from you.

See also: Leader, Discount, Sales, Marketing, Product

Marketing & Web Long-Range PlanningLoss Leader Pricing

 
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