The manufacturer of safety wallets is determining the retail price to charge for each unit sold. Which approach should the manufacturer use that supports the psychological pricing strategy?
A) Set the price at $24.97
B) Set the price at $25.00 for the first item and $5 for the second
C) Set the price according to the number of unrelated products sold
D) Set the price according to the number of variations of the wallet style
E) Set the first unit sold at full price and the second purchased at half price

Question

The manufacturer of safety wallets is determining the retail price to charge for each unit sold. Which approach should the manufacturer use that supports the psychological pricing strategy? ​
A) Set the price at $24.97
B) Set the price at $25.00 for the first item and $5 for the second
C) Set the price according to the number of unrelated products sold
D) Set the price according to the number of variations of the wallet style
E) Set the first unit sold at full price and the second purchased at half price

Quizplus · Accepted Answer

Psychological pricing strategies often involve pricing products in a way that makes them appear less expensive than they really are. Setting the price at $24.97, just below the $25 mark, is a common tactic to make the price seem significantly lower, appealing to consumers' perception of getting a better deal.

The Manufacturer of Safety Wallets Is Determining the Retail Price