Asked by Chris Gauthier on Feb 18, 2024
Verified
In what type of pricing customers are encouraged to believe that the product is less expensive than it really is?
A) skimming
B) fair pricing
C) psychological pricing
D) customer-led pricing
A) skimming
B) fair pricing
C) psychological pricing
D) customer-led pricing
Skimming
A high pricing strategy, generally used for new products or services that face very little or even no competition.
- Recognizing the importance of customer perception in pricing
- Identifying the concept of psychological pricing
- Understanding different pricing strategies used in marketing
Verified Answer
CA
Connor Allen-Dosenbach
Feb 18, 2024
Final Answer :
C
Explanation :
In psychological pricing, customers are encouraged to believe that the product is less expensive than it really is, by using techniques such as odd pricing (setting prices just below a round number, e.g. $9.99 instead of $10.00) or using sale language (e.g. "40% off" instead of stating the actual price).
Learning Objectives
- Recognizing the importance of customer perception in pricing
- Identifying the concept of psychological pricing
- Understanding different pricing strategies used in marketing