Sharkey's Surfboards are all priced one cent lower than the next round dollar, for example, $89.99, $129.99, and $114.99. Sharkey believes that his customers are affected by
A) sunk costs.
B) a sunk cost fallacy.
C) a framing bias.
D) overconfidence.

Question

Quizplus · Accepted Answer

Sharkey's pricing strategy leverages a framing bias, where the price is set just below a round number to make the product appear cheaper than it actually is, influencing customers' perception and decision-making.

Sharkey's Surfboards Are All Priced One Cent Lower Than the Next