In this type of pricing, customers are encouraged to believe that the product is less expensive than it really is:
A)skimming
B)fair pricing
C)psychological pricing
D)customer led pricing

Question

Quizplus · Accepted Answer

Psychological pricing is a strategy where companies price their products in a way that creates a perception of lower price in the minds of the customers. This is achieved by using pricing tactics like odd pricing, where prices end in numbers like 9 or 5, which are often associated with bargains. Other tactics include using sale signs, bundle pricing or decoy pricing. The aim of psychological pricing is to make customers perceive the product to be cheaper than it actually is and encourage them to buy the product.

In This Type of Pricing, Customers Are Encouraged to Believe