In a bid to attract more customers in a market which has several competitors, Barrymore's Bakery slashed the prices of all its products by 50%. Managers at the firm reasoned that lower prices would draw in even more customers, making up for the reduction in price several times over. Which of the following pricing strategies are they using?
A) market-skimming pricing
B) market-penetration pricing
C) captive-product pricing
D) cash discount pricing
E) by-product pricing

Question

Quizplus · Accepted Answer

Barrymore's Bakery is using market-penetration pricing where they are offering lower prices to attract more customers and increase their market share.

In a Bid to Attract More Customers in a Market