Penny Bank, a Discount Store, Is Highly Competitive

Multiple Choice

Penny Bank, a discount store, is highly competitive. When entering a new market, Penny Bank often cuts prices so deeply that it sells below costs, effectively pushing smaller retail stores with less purchasing power out of the market. In this case, Penny Bank is using ________.

A) market skimming
B) psychological pricing
C) predatory pricing
D) deceptive pricing
E) cost-plus pricing