Psychological pricing strategy represents a pricing strategy that establishes a low price in hopes of attracting a great number of customers and attempts to discourage competitors.

Question

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Psychological pricing is a strategy that uses pricing to influence consumer perception, such as setting prices just below a round number (e.g., $9.99 instead of $10) to make the price seem lower, rather than focusing on low pricing to attract customers and discourage competitors.

Psychological Pricing Strategy Represents a Pricing Strategy That Establishes a Low