A pricing approach that goes beyond economics, and considers the way that consumers think about prices and use them, for example, to make judgements about product quality, is known as:
A) psychological prices.
B) reference prices.
C) reservation prices.
D) product- form pricing.
E) customer- segment pricing.

Question

Quizplus · Accepted Answer

The pricing approach that considers how consumers perceive and use prices is called psychological pricing. This approach acknowledges that consumers often make judgments about the quality and value of products based on their price, and uses this understanding to shape pricing strategies. Reference pricing, reservation pricing, product-form pricing, and customer-segment pricing are all related pricing concepts, but they do not specifically address the psychological factors that influence consumer behavior.

A Pricing Approach That Goes Beyond Economics, and Considers the Way