Which of the following is true about odd-even pricing?
A) Prices are set a few dollars or a few cents below a round number to encourage the customers to think of the products as less expensive.
B) A percentage is added to the retailer's invoice price to determine the final selling price of the product.
C) Several products are sold together at a single price to connote value and convenience for customers.
D) It is used most often to describe the pricing of jobs that are nonroutine and difficult to "cost" in advance.

Question

Quizplus · Accepted Answer

Odd pricing, or odd-even pricing, is a type of psychological pricing strategy, in which prices are set a few dollars or a few cents below a round number to encourage consumers to think of the products as less expensive. Bundle pricing occurs when several products are sold together at a single price to connote value and convenience for customers. Markup pricing and cost-plus pricing are two forms of cost-oriented pricing. Markup pricing is commonly used in retailing: A percentage is added to the retailer's invoice price to determine the final selling price. Cost-plus pricing is most often used to describe the pricing of jobs that are nonroutine and difficult to "cost" in advance.

Which of the Following Is True About Odd-Even Pricing