Definition: Loss Leader is a promotional pricing tactic where a product is sold at a price below its market cost to stimulate other sales of more profitable goods or services. With this sales promotion/marketing strategy, a "leader" is typically any popular article which is sold at a low price to attract customers. The seller expects that (some/many/most) customers will purchase other items along with the loss leader and that the profit made on these items will be such that an overall profit is generated. |
More on pricing: By-Product Pricing, Cost-based Pricing, Decoy Effect, Demarketing, Dynamic Pricing, more on pricing... MBA Brief provides concise yet precise definitions of organizational concepts, management methods, and business models as taught in an MBA program. We keep it short and provide links to high-quality websites where you can learn more about your topic. |
© 2024 MBA Brief - Last updated: 6-11-2024 - Privacy | Terms