When a retailer routinely prices goods at $9.97 and $7.36 rather than $10.00 and $7.50,the retailer is using:
A)variable pricing.
B)penetration pricing.
C)odd pricing.
D)price skimming.

Question

Quizplus · Accepted Answer

The retailer is using odd pricing, which is a pricing strategy where prices are set at slightly below a round number (e.g. $9.97 instead of $10.00) to make it appear more attractive to customers. This strategy is often used to create the perception of a lower price without actually reducing the price.

When a Retailer Routinely Prices Goods at $9