A popular rock band has released a new CD - HSC - SSCE Business Studies - Question 16 - 2005 - Paper 1

The strategy the store is employing is known as 'Loss leader pricing.' This approach involves setting prices for certain products, like the new CD, below the cost price in order to attract customers. The goal is to generate sales in other products or services that have higher profit margins. By selling the CD at a loss, the store hopes to draw in customers, who may also purchase additional items while shopping.