What pricing strategy attempts to generate foot traffic by pricing a frequently purchased item low?

The pricing strategy that seeks to increase foot traffic to a store by offering a frequently purchased item at a low price is known as leader pricing. This approach is effective because it attracts customers who might then purchase additional products while in the store, thus increasing overall sales. By focusing on staple items that consumers need regularly, businesses hope to capitalize on this increased traffic and encourage impulse buying or increased purchases of higher-margin items during the visit.

Leader pricing relies on the assumption that customers drawn in by the low price will also buy other products, which can lead to a broader customer base and higher overall sales volume. This strategy is particularly common in retail settings where stores highlight sale items or loss leaders to entice shoppers.

In contrast, penetration pricing focuses on setting a low initial price for a new product to gain market share quickly, skimming pricing involves setting high prices initially before gradually lowering them, and psychological pricing takes into account customers' emotional responses to pricing, often using strategies like pricing something at $9.99 instead of $10 to make it appear more appealing. Each of these strategies serves different objectives and market situations, but they do not specifically aim to generate foot traffic through the pricing of frequently purchased items.