ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -A loss leader strategy prices a product lower than its production cost in order to attract customers or sell other, more expensive products.

Detailed explanation-2: -Leader pricing strategy is a distinct pricing strategy directed at attracting customers. The key instrument used in the approach is about setting lower price points and reducing profit margins to introduce brands while stimulating interest in the business or production of a particular product.

Detailed explanation-3: -What are the 4 major pricing strategies? Value-based, competition-based, cost-plus, and dynamic pricing are all models that are used frequently, depending on the industry and business model in question.

Detailed explanation-4: -Loss leader pricing is a marketing strategy that prices products lower than the cost to produce them in order to attract new customers or to sell additional products to customers. Companies typically use loss leader pricing when they are entering new markets or attempting to increase market share.

Detailed explanation-5: -Below market: Your price is below those of your competitors. Below-market pricing may appeal to budget-conscious consumers. Above market: Your price is greater than those of your competitors. Products or services that offer more features or overall value to the customer often have above-market prices.