The manufacturer of safety wallets is determining the retail price to charge for each unit sold.Which approach should the manufacturer use that supports the psychological pricing strategy?
A)set the price at $24.97
B)set the price at $25.00 for the first item and $5 for the second
C)set the price according to the number of unrelated products sold
D)set the price according to the number of variations of the wallet style
E)set the first unit sold at full price and the second purchased at half price

Question

The manufacturer of safety wallets is determining the retail price to charge for each unit sold.Which approach should the manufacturer use that supports the psychological pricing strategy? ​
A)​set the price at $24.97
B)​set the price at $25.00 for the first item and $5 for the second
C)​set the price according to the number of unrelated products sold
D)​set the price according to the number of variations of the wallet style
E)​set the first unit sold at full price and the second purchased at half price

Quizplus · Accepted Answer

Setting the price at $24.97 is an example of psychological pricing, where prices are set just below a round number to make them appear cheaper to consumers.

The Manufacturer of Safety Wallets Is Determining the Retail Price