The decision of Sears to use odd prices such as $59.99 for a Craftsman drill is an application of ____, where prices are often used to _____.
A)odd-number pricing; increase sales because customers register the dollar amount, not the cents
B)customary pricing; show customers products are priced based on tradition
C)price skimming; give a product an upscale or exclusive image
D)reference pricing; make it easier for consumers to compare
E)everyday low prices; facilitate comparison to competitors' prices

Question

Quizplus · Accepted Answer

Sears' use of odd-number pricing, where prices end in .99 or .95, is designed to make customers register the dollar amount more than the cents, making the price seem lower in their minds. This is a common practice used to increase sales.

The Decision of Sears to Use Odd Prices Such as $59.99