Question

thanksgiving turkey prices and holiday deals
wholesale turkey prices are up 40% this year, according to the american farm bureau federation.
but retailers are fighting back with aggressive thanksgiving meal deals to help shoppers stretch their holiday
budgets.
watching every penny
\im watching my pennies. when you are on a fixed income, youve got to watch your pennies,\ said shopper
pam stewart, who was stocking up on thanksgiving fixings at walmart. the retail giant recently rolled out
its thanksgiving meal deal featuring butterball frozen turkeys for just 97c per pound. the package includes
enough food to feed 10 people for under $40 - less than $4 per person. \our pricing has gone down on our
thanksgiving meal package from last year,\ said walmarts jayna hill.
competing thanksgiving deals
discount chain aldi is promoting a similar deal, claiming its thanksgiving bundle - with a 14 - pound turkey
and nine sides - also feeds 10 people for $40. kristin mcgrath, a senior editor with the krazy coupon lady,
said these deals are worth considering, but shoppers should understand their limitations: they dont include
extra desserts or family recipes that might add to the total cost. many regional supermarkets also offer free
turkeys as incentives, but mcgrath warns against overspending just to get the deal: \if youre spending extra
to get that free turkey, which you can get for under a dollar a pound, its not going to be worth it,\ she said
how can turkeys be \free\ if prices are up?
the american farm bureau federation says economic factors and \disease challenges\ have driven
wholesale turkey prices higher. however, the bureau does not expect a shortage and predicts retailers
will continue offering discounts. mcgrath explained that turkeys are known as a \loss leader\ - a
product sold at a low price to attract customers:
etailers are willing to absorb some of that cost
increase knowing that shoppers will buy all the ingredients for their thanksgiving meal,\ she said.
retailers are lowering prices to help shoppers who are struggling with high grocery costs and inflation.
even though inflation has slowed down, food prices are still high, and many families are feeling pressure to
stretch their budgets. by cutting prices - especially on holiday meal bundles - retailers hope to:

1. attract more customers to their stores (this is part of using a loss leader strategy).
2. encourage shoppers to buy more items once theyre in the store.
3. build loyalty with budget - conscious customers during the holidays.

question #1
what is the main reason why retailers
are offering lower prices for
thanksgiving meals this year?
a. they are trying to be generous
to customers during the
holiday season.
b. they are trying to increase
their profits by selling more
meals.
c. they are trying to attract
customers and build brand
loyalty.
d. they are trying to reduce their
inventory of food items.

question #2
what is a \loss leader\?
a. a government tax credit
for food retailers
b. a store manager who
tracks losses
c. a product sold at a low
price to attract customers
d. a brand name for
wholesale turkeys

question #3
why are turkeys considered a
\loss leader\ during
thanksgiving?
a. because stores lose money to
bring customers in for other
purchases
b. because turkeys are in short
supply
c. because the government
subsidizes turkey farms
d. because they are imported
products

Explanation:

• Question #1: The text mentions that retailers hope to "Attract more customers to their stores (this is part of using a loss leader strategy)", "Encourage shoppers to buy more items once they’re in the store", and "Build loyalty with budget - conscious customers during the holidays". Option C aligns with these goals as attracting customers and building brand loyalty encompasses these aspects.
• Question #2: The text clearly states "McGrath explained that turkeys are known as a 'loss leader' — a product sold at a low price to attract customers". So, option C is correct.
• Question #3: As per the text "Retailers are willing to absorb some of that cost increase knowing that shoppers will buy all the ingredients for their Thanksgiving meal". This means stores take a loss on turkeys (by selling at a low price) to get customers in for other purchases. So, option A is correct.

Answer:

• Question #1: C. They are trying to attract customers and build brand loyalty.
• Question #2: C. A product sold at a low price to attract customers.
• Question #3: A. Because stores lose money to bring customers in for other purchases.