In a bid to attract more customers in a market that 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

D. Cash discount pricing

Explanation:

-Market-skimming pricing is a strategy in which a high price is set for a new product to get to the customers that are interested in it and then the price is reduced to attract other customers.

-Market-penetration pricing is a strategy that establishes a low price for a new product to attract customers.

-Captive-product pricing is a strategy in which the main product has a low price but the captive product that is the one that has to be used with the main product, has a high price.

-Cash discount pricing is a strategy in which there is a reduction in the price of a product or service to attract more customers.

-By product pricing is a strategy in which a product that is produced as a result of the main product is sold alone to get more profits.

According to this, the pricing strategy that Barrymore's Bakery is using is cash discount pricing as it slashed the prices of all its products by 50%.