Some retailers feel that their potential customers find certain prices appealing, but between these prices the customers see prices as roughly the same--and thus price cuts within these ranges will not increase the quantity sold (i.e., the demand curve is vertical within these "same price" ranges). These retailers probably use ______________ if they want to maximize profit.
A) average-cost pricing
B) bait pricing
C) leader pricing
D) prestige pricing
E) psychological pricing

Question

Quizplus · Accepted Answer

Psychological pricing is used to make prices more appealing to customers, often by setting prices just below a round number, which can influence perception and demand.

Some Retailers Feel That Their Potential Customers Find Certain Prices