File: //old_home_backup/consumeraffairs.org.uk/public_html-20241004153750/demand/loss-leader.php
<!DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd">
<html xmlns="http://www.w3.org/1999/xhtml">
<head><!-- TemplateBeginEditable name="EditRegion2" -->
<title>Economic Consumer Affairs -
Loss Leader
| 2017/8</title><!-- TemplateEndEditable -->
<meta name="description" content="Economic Institutions - Institutional Economics" />
<meta name="keywords" content="Economic System - Islamic Economic System" />
<meta http-equiv="Content-Type" content="text/html; charset=UTF-8" />
<script type="text/javascript" src="/js/jquery-1.4.2.min.js"></script>
<script type="text/javascript" src="/js/script.js"></script>
<script type="text/javascript" src="/js/coin-slider.min.js"></script>
<link href="/style.css" rel="stylesheet" type="text/css" />
<link href="style.css" rel="stylesheet" type="text/css" />
</head>
<body>
<div class="main">
<div class="header">
<div class="header_resize">
<div class="logo"> <a href="/index.php"><img src="/images/logo.gif" width="200" height="130" alt="Economic Consumer Affairs Starting your own business" /></a> </div>
<div class="menu_nav">
<ul>
<li><a href="/index.php"><span>Home</span></a></li>
<li><a href="/applied-economics.php"><span>Applied Economics</span></a></li>
<li><a href="/bank-of-england.php"><span>Banks</span></a></li>
<li><a href="/beveridge-william.php"><span>Beveridge</span></a></li>
<li><a href="/capital-stock.php"><span>Capital Stock</span></a></li>
<li><a href="/earned.php"><span>Income</span></a></li>
<li><a href="/economy/UK/economy.php"><span>UK Economy</span></a></li>
<li><a href="/contact.php"><span>Contact</span></a></li>
</ul>
</div>
<div class="clr"></div>
<div class="slider">
<div id="coin-slider"> <a href="/index.php"><img src="/images/slide1.jpg" width="960" height="180" alt="Bank of England " /></a> <a href="/index.php"><img src="/images/slide2.jpg" width="960" height="180" alt="How to make a start with your own business" /></a> </div>
<div class="clr"></div>
</div>
<div class="clr"></div>
</div>
</div>
<div class="content">
<div class="content_resize"><!-- TemplateBeginEditable name="EditRegion1" -->
<div class="mainbar">
<div class="article">
<h1>
Loss Leader
</h1><script type="text/javascript"><!--
google_ad_client = "";
/* links in a line #215670 */
google_ad_slot = "8962789804";
google_ad_width = 468;
google_ad_height = 15;
//-->
</script>
<script type="text/javascript"
src="http://pagead2.googlesyndication.com/pagead/show_ads.js">
</script>
<div id="images3"><img src="/economics-imgs/economics-370.jpg" alt="Loss Leader" /></div>
<p>
Loss Leader, a commodity sold by a retailer at less than its 'trade' price in order to attract custom. Shopkeepers who oppose price competition sometimes refer to all low-price offers as loss leaders; but a selling price which might involve them in a loss may nevertheless yield a profit to a competitor who buys at a lower price because he buys in larger quantities or receives discounts given by the manufacturer to introduce new lines.<br /><br />Loss leaders are a long-standing form of advertising in retailing from which shoppers may benefit directly. It is sometimes suggested that they lead customers up the garden path: having been -tempted into the shop by 'call birds they are then mulcted by being charged enhanced prices on the main stock. This suggestion gives little credit to the common sense of shoppers; even if it were true, shoppers would suffer only if their total purchases cost more. Another objection is to 'cherry-picking': shoppers will buy only loss leaders. But if this were so, shopkeepers would soon have to stop it or go out of business.<br /><br />It is sometimes argued that manufacturers may suffer by having their brands sold as loss leaders on the ground that short-lived price-cutting leads to fluctuations in sales and makes production planning more difficult; so that prolonged price-cutting may cause shopkeepers to stop carrying the brand. There are two difficulties about this view. A manufacturer can scarcely be said to suffer if his sales are increased even though they fluctuate. Further, as only well-known brands make suitable loss leaders, shopkeepers cannot easily keep their customers if they stop selling such goods. <br /><br />McCulloch, John Ramsey (1789-1864), Scottish statistician and economist. He studied for some time at the University of Edinburgh, and soon decided to devote himself to political economy. His work in statistics led him to be appointed Comptroller of the Stationery Office in 1838, a position he held until his death. McCulloch had the misfortune to be over-shadowed by his contemporaries. His main work, Principles of Political Economy (1825), shows an unquestioning faith in Ricardo's doctrines, but its lucid exposition of these doctrines served as a basic text until displaced by John Stuart Mill's consumeraffairs.org.uk
of the same title. <br /><br />
</p>
<h2>
Read more Economic Institutions - Institutional Economics
</h2>
<ul>
<div id="images4"><img src="/econ/images-economy-497.jpg" alt="Loss Leader" /></div>
<li><a href="/macro-economics-study.php"> Macro Economics Study </a></li>
<li><a href="/marshalls-main-publications.php"> Marshalls Main Publications </a></li>
<li><a href="http://www.mills.edu/academics/faculty/econ/dwrh/dwrh.php" target="_blank"> Mills College, Faculty In Economics </a> <img src="/images/icon_external.gif" width="9" height="9" /></li>
<li><a href="http://www.ukessays.com/essays/economics/definition-of-competition.php" target="_blank"> Economics Essays - Definition Of Competition </a> <img src="/images/icon_external.gif" width="9" height="9" /></li>
</ul>
<br />
<p>
<spc: %other />
</p>
<div class="clr"></div>
</div>
</div>
<!-- TemplateEndEditable -->
<div class="sidebar">
<div class="gadget">
<h2 class="star"><a href="/index.php">
Loss Leader
</a></h2>
<div class="clr"></div>
<script async src="//pagead2.googlesyndication.com/pagead/js/adsbygoogle.js"></script>
<!-- spamdex-display -->
<ins class="adsbygoogle"
style="display:block"
data-ad-client="ca-pub-2121528995419082"
data-ad-slot="8029362605"
data-ad-format="auto"></ins>
<script>
(adsbygoogle = window.adsbygoogle || []).push({});
</script>
</script>
<script type='text/javascript'><!--// <![CDATA[
OA_show(53);
// ]]> --></script>
<p><a href="/index.php">Economics</a> uses everyday words in a more specific sense than that in which they are used by the non-economist. 'Demand', 'supply', cost', 'market', 'rent' and many other words do not mean the same to economists as they do in everyday usage.<br />
</p>
<p><strong>Recent Reads</strong><br />
<a href="/bank-of-england.php">Banks</a>
<a href="/capital-stock.php">capital</a>
<a href="/markets/economics/debt-conversion.php">debt</a>
<a href="/division-of-labour.php">labour</a>
<a href="/trade/UK/growth-economic.php">economy</a>
<a href="/hume-david.php">David Hume</a>
<a href="/land-tax.php">land tax</a>
<a href="/law-economic.php">law</a>
<a href="/marx-karl.php">Karl Marx</a>
<a href="/pension-term-used.php">pensions</a> <br />
. </p>
<p><a href="http://www.economist.com/business-finance" target="_blank"><img src="/images/econm.gif" alt="Consumer Affairs" width="267" height="553" border="0" /></a></p>
<p> </p>
</div>
</div>
<div class="clr"></div>
</div>
</div>
<div class="fbg">
<div class="fbg_resize">
<div class="col c1">
<h2><span>consumeraffairs.org.uk
</span></h2>
<p>Since then his writings have in turn been increasingly reinterpreted as a special case both by some followers and by some economists who had not wholly accepted his writings. The content of economics is in a state of change, and this consumeraffairs.org.uk
site is therefore not a final statement of economic doctrine.<br /><br /><strong>Economics</strong> is in the last resort a technique of thinking. The reader will therefore need to make an intellectual effort, more substantial for some web entries than for others, to get the most interest and value out of this website.<br />
</p>
</p>
</div>
<div class="col c2">
<h2>Ecomical Favourites</h2>
<ul id="spcFooterLinks"><li><a href="/loss-leader.php" title="Loss Leader" alt="Loss Leader">Loss Leader</a></li><li><a href="/macro-economics-study.php" title="Macro Economics Study" alt="Macro Economics Study">Macro Economics Study</a></li><li><a href="/malthus-thomas-robert.php" title="Malthus Thomas Robert" alt="Malthus Thomas Robert">Malthus Thomas Robert</a></li><li><a href="/malthusian-theory.php" title="Malthusian Theory" alt="Malthusian Theory">Malthusian Theory</a></li><li><a href="/managed-currency.php" title="Managed Currency" alt="Managed Currency">Managed Currency</a></li><li><a href="/managerial-revolution-first.php" title="Managerial Revolution First" alt="Managerial Revolution First">Managerial Revolution First</a></li><li><a href="/marginal-analysis.php" title="Marginal Analysis" alt="Marginal Analysis">Marginal Analysis</a></li><li><a href="/market-in-its.php" title="Market In Its" alt="Market In Its">Market In Its</a></li><li><a href="/market-central-market.php" title="Market Central Market" alt="Market Central Market">Market Central Market</a></li><li><a href="/market-research-method.php" title="Market Research Method" alt="Market Research Method">Market Research Method</a></li></ul></div>
<div class="clr"></div>
</div>
</div>
<div class="footer">
<div class="footer_resize">
<p class="lf">© Copyright 2018 | <a href="mailto:contact@consumeraffairs.org.uk">contact@consumeraffairs.org.uk
</a> |<a href="http://www.economics.ox.ac.uk/" title="Economics" target="_blank"> Economics</a> | <a href="https://www.sandrajonaspublishing.com/">Sandra Jonas Publishing</a> | One Heddon Street | Mayfair | London | W1B 4BD | Consumer Affairs was a not-for-profit organisation offering free advice about debt and money management via guides and reports on its website. </p>
</div>
</div>
</div>
<script type="text/javascript">
var _gaq = _gaq || [];
_gaq.push(['_setAccount', 'UA-31916544-1']);
_gaq.push(['_trackPageview']);
(function() {
var ga = document.createElement('script'); ga.type = 'text/javascript'; ga.async = true;
ga.src = ('https:' == document.location.protocol ? 'https://ssl' : 'http://www') + '.google-analytics.com/ga.js';
var s = document.getElementsByTagName('script')[0]; s.parentNode.insertBefore(ga, s);
})();
</script><script>
(function(i,s,o,g,r,a,m){i['GoogleAnalyticsObject']=r;i[r]=i[r]||function(){
(i[r].q=i[r].q||[]).push(arguments)},i[r].l=1*new Date();a=s.createElement(o),
m=s.getElementsByTagName(o)[0];a.async=1;a.src=g;m.parentNode.insertBefore(a,m)
})(window,document,'script','https://www.google-analytics.com/analytics.js','ga');
ga('create', 'UA-87073664-1', 'auto');
ga('send', 'pageview');
</script></body>
</html>