Answer :
Final answer:
The correct pricing strategy when supermarkets and department stores reduce prices on well-known brands to increase store traffic is actually 'loss leader' pricing, which is not listed. The closest option provided is psychological pricing.
Option d.
Explanation:
When supermarkets and department stores drop the price on well-known brands to stimulate store traffic, they are said to be following loss leader pricing.
This is not one of the options provided in the question, but none of the listed options (A. Competitive pricing B. Skimming pricing C. Cost-plus pricing D. Psychological pricing) directly describe this scenario.
However, if we had to choose the closest among the given, it would be psychological pricing, which involves strategies designed to have a psychological impact, such as the perception of getting a good deal.
The relevant strategy described in the question seems to be to attract customers through low prices on popular items, knowing that once the customers are in the store, they are likely to purchase other goods at regular prices.
Option d.