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 would 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 strategies, such as setting prices at certain "appealing" points (e.g., $9.99 instead of $10), are used by retailers who believe that certain prices have a psychological impact on consumers. This approach aligns with the belief that within certain ranges, customers perceive prices as roughly the same, and thus, adjustments within these ranges won't affect demand significantly.

Some Retailers Feel That Their Potential Customers Find Certain Prices