What pricing strategy uses low, unprofitable prices to attract customers into a store?

The correct answer is based on the concept of loss leaders, which is a pricing strategy designed to attract customers by offering certain products at a price that is intentionally set low, often below the cost of production. This approach aims to draw customers into a store with the hope that, once there, they will purchase additional items that are priced at normal profit margins or higher.

This strategy is particularly effective in a retail context, where stores may use one or more popular products as loss leaders to encourage more foot traffic and increase overall sales volume. By hooking customers with appealing prices, businesses expect to offset the losses on these particular items through the sale of other, more profitable goods. Thus, the loss leader strategy not only emphasizes attracting customers but also aims to enhance customer retention and loyalty.

In contrast, the other pricing strategies mentioned do not focus specifically on attracting customers through low prices. Market skimming involves setting high prices initially and then gradually lowering them, aiming to capture consumer surplus. Quality control refers to processes that ensure products meet specific standards, not a pricing strategy. Price discrimination involves charging different prices to different customers based on various factors, which is unrelated to the practice of attracting customers with unprofitable pricing.