Psychological pricing is best defined as ________.
A) setting an initial low price to establish a new product in the market
B) setting a limited number of prices for certain categories of products
C) taking advantage of the fact that consumers don't always respond rationally to prices
D) setting an initial high price to cover new product costs and generate a profit

Question

Quizplus · Accepted Answer

Psychological pricing is the practice of setting prices that take into account the psychological and emotional responses of consumers. It involves using pricing tactics that appeal to consumers' perceptions of value and willingness to pay, rather than purely rational considerations. This could include setting prices just below a round number, using odd pricing (ending in .99 or .95), and using bundle pricing to make products seem like a good deal. The goal is to influence customers to make a purchase based on emotional factors rather than just the product's objective value.

Psychological Pricing Is Best Defined as ________