Question

METS Pens, a pen manufacturing company, sometimes gives away some of its gel pens practically for free but reaps handsome profits as customers buy pen refills. In the context of pricing strategies, it is evident that METS Pens has adopted a strategy of _____________ .

Answer 1

Loss leader strategy

Step-by-step explanation:

A loss leader is a strategy in which an item or administration that is offered at a value that is not beneficial, yet it is offered to pull in new clients or to offer extra items and administrations to those clients. Loss leading is a typical practice when a business first enters a market. Basically, a loss leader informs new clients with an assistance or item in the desire for building a client base and verifying future repeating income.