Question

Today is Commerce Day, which is celebrated on the Friday following Thanksgiving Thursday. The day was instituted to satisfy pent-up demand that accumulated over the mid-week consumer diversion to Sam's Club (for food-stuffs), away from Wal-Mart (for all other-stuffs). At a Best Buy Co. Inc. store at Cambridge Side Galleria, in Cambridge, Mass., the line of about 400 shoppers snaked through the indoor mall for the 5 a.m. store opening, a scene that was played out across the country. Lined-up consumers were: ...enticed by deals such as a Toshiba Corp. laptop computer, with a 15-inch screen, that was $159.99 Sales end at noon. We're outta here. Happy Commerce Day to you and yours! This is an example of: q) everyday low pricing h) dynamic pricing r) uniform delivered pricing i) loss-leader pricing s) bait and switch deceptive pricing j) price lining/pricing points t) price fixing p) cash discounts o) trade discounts l) basing-point pricing k) flexible-price policy

Answer 1

This is an example of loss leader pricing

Definition:

Loss leader is a strategy in which a selected products is sold at a price below its market price. So the assuption here is that by selling selected products is sold at a price below its market price it will in turn boost the sales of other products which seems profitable. It can be also be seen as a promotion of other few articles/goods.

Here the laptop deal is done inorder to boost the sales of laptop and also other products at the respective stores