A hamburger stand near the local mall sells hamburgers for $3.99, drinks for $1.99, and fries for $1.49, while a gourmet restaurant nearby sells entrees for $20, $30, and $45. Both of these restaurants are using ________.
A) demand-based pricing
B) cost-based pricing
C) psychological pricing
D) prestige pricing
E) penetration pricing

Question

Quizplus · Accepted Answer

Both the hamburger stand and the gourmet restaurant are using psychological pricing, as they use prices ending in .99 to make the prices appear lower than they actually are.

A Hamburger Stand near the Local Mall Sells Hamburgers for $3.99