logo share us

Loss Leader


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.


Learn more about Loss Leader.

More on pricing: By-Product Pricing, Cost-based Pricing, Decoy Effect, Demarketing, Dynamic Pricing, more on pricing...

MBA Brief offers concise, yet precise definitions of concepts, methods and models as taught in a study Master of Business Administration.

We like to keep things short, and provide links to learn more about your subject.

add us to your desktop

Add MBA Brief to your desktop / iPad


© 2024 MBA Brief - Last updated: 20-7-2024  -  Privacy   |   Terms