Loss Leader is the term used to refer to goods or services offered at deep discounts (often below cost) in order to attract customers. The strategy behind the loss leader is that the discounted product or service will attract customers to the business to "get the deal", and then they will continue to buy/use other products or services that are more profitable.
Lost Leader, is the term used in error. Not to say that there are no "lost leaders" (world politics can boast quite a few!), but it is incorrect when used to describe this particular marketing strategy.
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