The rationale for using odd pricing is that it:
A) simplifies the decision process.
B) eliminates the need for price lining.
C) creates cognitive satisfaction.
D) suggests lower prices.
E) appeals to customers who want to trade up.

Question

Quizplus · Accepted Answer

Odd pricing, such as pricing an item at $19.99 instead of $20, is thought to suggest lower prices to consumers because the slightly lower figure can make the price seem significantly less, even though the difference is minimal. This psychological pricing strategy is used to make items appear cheaper and thus more attractive to buyers.

The Rationale for Using Odd Pricing Is That It