Grumble's Clothing Depot has been open for a few years and has always priced its clothing to prices that are on the dollar like $50, $100, and $150. The new president has suggested a new pricing approach to bolster sales. Department personnel spend the weekend changing prices on all items to odd numbers like $49.99, $99.99, and $149.99. Grumble's is most likely using which pricing strategy?
A) psychological pricing
B) price skimming
C) discounting
D) penetration pricing
E) high-low pricing

Question

Quizplus · Accepted Answer

Grumble's Clothing Depot is using psychological pricing by setting prices just below a round number (e.g., $49.99 instead of $50), which can make the price seem lower to consumers and potentially increase sales.

Grumble's Clothing Depot Has Been Open for a Few Years