________ involves taking advantage of the fact that consumers do not always respond rationally to stated prices.
A) Price differentiation
B) Penetration pricing
C) Psychological pricing
D) Price skimming

Question

Quizplus · Accepted Answer

Psychological pricing involves taking advantage of consumers' emotional responses to prices in order to influence their purchasing behavior. This can involve tactics such as setting prices slightly lower than a competitor's, using odd or charm prices (such as $9.99 instead of $10), or offering discounts or bundle deals. These strategies are designed to make consumers feel like they are getting a good deal or saving money, even if the actual price difference is small. Price differentiation refers to offering different prices to different groups of customers based on factors such as their willingness to pay or their purchasing history. Penetration pricing involves setting a low price initially in order to gain market share, while price skimming involves setting a high price initially and gradually lowering it over time.

________ Involves Taking Advantage of the Fact That Consumers Do