Psychological pricing tactics include prestige pricing, odd pricing, and reference pricing.

Question

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Psychological pricing tactics are designed to have a psychological impact on consumers. Prestige pricing involves setting prices higher to give the appearance of quality. Odd pricing, often ending in .99 or .95, makes items seem cheaper than they are. Reference pricing shows a higher original price next to the current price to illustrate a good deal.

Psychological Pricing Tactics Include Prestige Pricing, Odd Pricing, and Reference