When Lucile visited a stationery store to buy tape,she noticed that each roll of tape was priced at $1.99.In fact,most of the prices at the store were set a few dollars or a few cents below a round number.This indicates that the manager of the store is using a(n)_____.
A)odd-even pricing strategy
B)bundle pricing strategy
C)prestige pricing strategy
D)premium pricing strategy

Question

Quizplus · Accepted Answer

The use of prices that are slightly below a round number is a characteristic of the odd-even pricing strategy. This strategy involves setting prices at odd numbers or just below the nearest dollar or ten-dollar amount, with the idea that customers perceive them as being lower than they actually are.

When Lucile Visited a Stationery Store to Buy Tape,she Noticed