Heidi, the marketing manager of a cosmetic manufacturing company, decides to fix the price of a new perfume at $89.99. She believes that the odd pricing of the product will encourage potential buyers to think of the product as less expensive. Which of the following factors has Heidi considered when making her pricing decision?
A) Environmental factors
B) Demographic factors
C) Economic factors
D) Psychological factors

Question

Quizplus · Accepted Answer

Heidi has considered psychological factors as she believes that the odd pricing of the product will encourage potential buyers to think of the product as less expensive. This pricing tactic is based on the psychological theory that odd pricing can create the perception of a bargain in the minds of consumers.

Heidi, the Marketing Manager of a Cosmetic Manufacturing Company, Decides