Question 1

Firms engage in odd pricing when they charge prices that appear to be less than they really are; for example, charging a price of $4.95 instead of $5.00 and $.99 instead of $1.00. How have researchers tried to determine whether odd pricing is successful in convincing consumers that odd prices are less than they really are?

Accepted Answer

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Question 2

What is cost-plus pricing? Why do some firms use cost-plus pricing even when the firms' managers have the resources to devise a pricing strategy that would result in greater profits?

Accepted Answer

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Question 3

Why might an amusement park switch from charging admission to the park and charging for the rides to charging for admission but not charging for the rides?

Accepted Answer

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Quiz 16: Pricing Strategy

What is cost-plus pricing? Why do some firms use cost-plus pricing even when the firms' managers have the resources to devise a pricing strategy that would result in greater profits?

Why might an amusement park switch from charging admission to the park and charging for the rides to charging for admission but not charging for the rides?