What is the rationale for a store advertising the sale of one item at a price that may be potentially lower than the cost of the item to the store?
What will be an ideal response?
The store is using this one sale item as a loss leader item in its pricing strategy. Some retailers advertise items at very low prices or even below cost and are glad to sell them at that price because they know that once in the store, customers may buy other items at regular prices.
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