Page 95 - Microsoft Word - 00 CIMA F1 Prelims STUDENT 2018.docx
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     The pricing decision
               6.4   Loss leader pricing
               When a product range consists of one or more main products and a series of related
               optional ‘extras’, which the customer can ‘add on’ to the main product, the supplier
               can set a relatively low price for the main product and a high one for the ‘extras’.
               The aim is to stimulate sufficient demand for the former to ensure the target return
               from sales of the latter.
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