Answer :
The strategy described is termed loss-leadership pricing and is utilized by businesses to attract customers with a low-priced item, encouraging additional purchases at regular prices, hence correct answer b. Loss-leadership pricing.
Loss-leadership pricing is tactic is used by businesses as part of a larger marketing and pricing strategy to lure customers in with a seemingly unbeatable deal on one product, in hopes that they will buy additional products with higher profit margins during their visit.
For instance, a grocery store may sell milk at a very low price, knowing that while it may not profit much from the milk, shoppers are likely to pick up other full-priced items along the way.
Discounts based on occupation or coupons are also pricing tactics but serve different purposes, like targeting specific customer segments or rewarding price-sensitive consumers.
In contrast, penetration pricing involves starting with a low price to enter a market and build a customer base before gradually raising prices. All these strategies demonstrate the complex considerations businesses must take into account when setting prices for their products or services.
Therefore, the correct answer b. Loss-leadership pricing.