What is a key characteristic of loss leader pricing?

A key characteristic of loss leader pricing is that products are heavily discounted for a limited time. This pricing strategy is designed to attract customers into a store or to a website by offering certain items at prices that are significantly lower than their normal retail prices, sometimes even below cost. The idea is to draw in consumers with these attractive deals, which can lead to an increase in foot traffic or online visits, and ultimately encourage the purchase of other, more profitable products.

While loss leader pricing does aim to encourage repeat business indirectly by creating a customer base, the hallmark feature is the heavy discounting for a limited time, making option C the most accurate representation of this pricing strategy. The concept is not exclusive to online sales, as it is commonly used in various retail environments, meaning that it is not limited in its application as suggested in the last choice. Thus, the focus on significant markdowns within a defined timeframe distinguishes loss leader pricing from other pricing strategies.