A loss leader may be used as part of which of pricing strategies ? may i know why the answer is full range pricing not predator pricing as according to the internet i found out that the definition of predatory pricing is pricing strategy where a dominant firm deliberately reduces prices of a product or service to loss-making levels in the short-term tq
Hi Pxliang, The definition of a loss leader is given on page 11 of module 9. Loss leaders are offered at low prices in the hope of attracting customers who might buy other, more profitable products. The business is therefore considering the price of the loss leaders alongside other products, hence 'full-range pricing' is the correct answer. You are correct that firms might also sell products at a loss under a predatory pricing strategy, however, the aim of doing so here is different to that intended from a loss leader. Many thanks, Richie
