The strategy of setting prices at uneven amounts that are slightly below an even or whole number of dollars is called
A) penetration pricing.
B) price skimming.
C) sample pricing.
D) introductory pricing.
E) odd-number pricing.

Question

Quizplus · Accepted Answer

The strategy of setting prices at uneven amounts that are slightly below an even or whole number of dollars is called odd-number pricing. This is because it is based on the idea that customers psychologically perceive prices that are not whole numbers as being lower than they actually are. This strategy is often used in retail and can help create an illusion of a lower price, which can increase sales and customer satisfaction. Penetration pricing involves setting a low price to enter a market and gain market share, while price skimming involves setting a high price to recoup costs quickly. Sample pricing and introductory pricing involve offering products at a discounted price to encourage customers to try a new product or enter a new market.

The Strategy of Setting Prices at Uneven Amounts That Are