What pricing strategy involves sellers bidding prices to capture a buyer's business?

The pricing strategy that involves sellers bidding prices to capture a buyer's business is known as competitive bidding, which closely aligns with the context of cost-plus pricing in certain scenarios. This strategy commonly occurs in auctions or competitive environments where multiple sellers offer prices in hopes of winning a customer’s contract or business.

Cost-plus pricing typically involves setting prices based on the cost of production plus a markup for profit. However, in the context of bidding, sellers may adjust their cost-plus calculations dynamically based on the prices set by competitors to ensure they remain competitive and able to win the bid. This strategy can lead to sellers actively participating in price negotiation through bids, particularly in industries with significant competition and variable costs.

The other options present different pricing approaches that do not revolve around the bidding process. Average-cost pricing focuses on setting a price based on the total cost divided by the number of units produced. Target return pricing is aimed at achieving a specific return on investment, and price fixing is an illegal practice where competitors set prices at a predetermined level, rather than allowing market forces to dictate them. Thus, the competitive nature of cost-plus pricing in a bidding context makes it the most relevant choice regarding the question about sellers bidding to win business.