A firm utilizing an odd-pricing strategy assumes that consumers have inelastic demand between odd prices and even-dollar values.

Question

Quizplus · Accepted Answer

Odd-pricing strategy is based on the psychological pricing theory that prices ending in an odd number (e.g., $1.99) are perceived by consumers as significantly lower than they actually are, rather than assuming inelastic demand between odd and even prices.

A Firm Utilizing an Odd-Pricing Strategy Assumes That Consumers Have