Psychological pricing is based on the premise that:
A) certain prices or price ranges make products more appealing to buyers than others.
B) one-price policies appeal to most people and suit mass-marketing programs.
C) setting a limited number of prices for a selection of merchandise has a certain appeal.
D) lower-than-normal prices as part of recurring marketing initiatives creates demand.

Question

Quizplus · Accepted Answer

Psychological pricing strategies suggest that certain prices have a psychological impact. The retail price is often set just below a round number, e.g., $1.99 instead of $2.00. This approach makes the price seem lower than it actually is, potentially making the product more appealing to consumers.

Psychological Pricing Is Based on the Premise That