In a Bid to Attract More Customers in a Market

question 37

Multiple Choice

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

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Definitions:

Capillary

The smallest blood vessels in the body's circulatory system, connecting arterioles to venules and facilitating the exchange of water, oxygen, carbon dioxide, and many other nutrients and waste substances between blood and tissues.

Arteriole

Minute artery with all three tunics that transports blood to a capillary.

Venule

Minute vein, consisting of endothelium and a few scattered smooth muscles, that carries blood away from capillaries.

Systemic Blood Vessels

The network of blood vessels that circulate blood to and from the heart and all body parts, excluding the lungs.