Loss leader pricing refers to a practice by retailers to offer a product for a deeply discounted price (at a loss) so that customers will visit the store to purchase it. Once the customer is in the store, the retailer hopes to make up for the loss on the sale of the discounted product by encouraging the customer to purchase other products that are not so deeply discounted. In other words, the product that is sold at a loss, will lead the customer into the store so that he or she will follow that purchase with other purchases.
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