Ethics Many successful retailers use a loss leader pricing strategy, in which they advertise an item at a price below their cost and sell the item at that price to get customers into their store. They feel that these customers will continue to shop with their company and that they will make a profit in the long run.

Do you consider this an unethical practice? Who benefits and who is hurt by such practices? Do you think the practice should be made illegal, as some states have done? How is this different from baitand-switch pricing?