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Explain each of the following: (i) impulse buying (ii) loss leader - Junior Cycle Home Economics - Question 10 - 2012
Question 10
Explain each of the following: (i) impulse buying (ii) loss leader
Worked Solution & Example Answer:Explain each of the following: (i) impulse buying (ii) loss leader - Junior Cycle Home Economics - Question 10 - 2012
Step 1
impulse buying
Answer
Impulse buying refers to the act of making unplanned purchases without prior consideration. It often happens when a consumer encounters an appealing item that triggers an immediate desire to buy, leading them to act on their emotions rather than rational thought. These purchases are often spontaneous and can be influenced by promotional tactics or an attractive display in a retail setting.
Step 2
loss leader
Answer
A loss leader strategy involves selling products at a price lower than their market cost to attract customers to a store. The objective is to encourage shoppers to enter the establishment, with the expectation that they will also buy other items at regular prices. This tactic can effectively boost overall sales volume, even if the initial items sold result in a loss.