What strategy lowers a product's price below the store's cost?

Loss leader pricing is a strategy used by retailers where they intentionally set the price of a product below their own cost to attract customers into the store. The goal is to entice consumers to purchase additional items that are priced normally or at a profit margin. This tactic leverages the appeal of low-priced items, often staples or popular goods, to increase overall traffic and future sales within the store.

In contrast, deceptive advertising refers to misleading promotional tactics that exaggerate or misrepresent a product, while price fixing involves collusion among competitors to set prices at a certain level, infringing on fair competition practices. Zone pricing is a strategy where different prices are charged in different geographic areas based on various factors. These alternatives do not directly involve lowering prices below cost for the strategic purpose of attracting customers in the way loss leader pricing does.