Which of the followingstatements is true of odd pricing?
A)It is the idea that if a television costs $599 instead of $600, consumers perceive the first one to be far cheaper than it actually is.
B)This strategy includes random and arbitrary price fluctuations in order to increase foot traffic.
C)It is the most popular method of establishing a fixed margin by determining the actual cost of each product.
D)It means that a producer has decided to decrease variable costs.

Question

Quizplus · Accepted Answer

Odd pricing is the strategy of setting prices just below a round number, such as pricing a product at $9.99 instead of $10.00. This is based on the idea that consumers perceive prices ending in 9 as being cheaper than a round price. Option A describes this concept accurately. Option B is referring to a tactic called dynamic pricing, where prices are changed frequently based on factors such as demand and competition. Option C is describing cost-plus pricing, a method where a fixed margin is added to the cost of producing a product to determine its price. Option D is unrelated to odd pricing.

Which of the Followingstatements Is True of Odd Pricing