Pricing a product based on consumers' reference prices is referred to as ________ pricing.
A) geographical
B) psychological
C) allowance
D) by-product
E) captive-product

Question

Quizplus · Accepted Answer

Psychological pricing is based on consumers' reference prices and perception of value. This type of pricing takes into account the consumer's psychology and behavior. It may involve setting prices that are slightly lower or higher than competitors, using odd pricing, or offering discounts that make customers believe they are getting a good deal.

Pricing a Product Based on Consumers' Reference Prices Is Referred