MANAGEMENT

Detailed explanation-1: -A loss leader strategy involves selling a product or service at a price that is not profitable but is sold to attract new customers or to sell additional products and services to those customers. Loss leading is a common practice when a business first enters a market.

Detailed explanation-2: -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-3: -It’s commonly used in the grocery industry to attract new customers or gain additional revenue on other items. Loss leaders are part of well-cultivated business strategies and often generate far more revenue than their cost.

Detailed explanation-4: -Some examples of typical loss leaders include milk, eggs, rice, and other inexpensive items that grocers would not want to sell without the customer making other purchases.

Detailed explanation-5: -Walmart is the perfect example of a loss leader company. They are known for their low prices on everything from groceries to electronics, most of which are sold below cost. By offering products at a lower price than their competitors, Walmart attracts more customers and increases revenue from other products.