Question

Which is an example of psychological pricing?(1 point)
Responses

A business sells a new product at a lower price initially, but raises prices once product has loyal customers.
A business sells a new product at a lower price initially, but raises prices once product has loyal customers.

A business places billboard ads in a heavily populated area of town, hoping to attract more consumers.
A business places billboard ads in a heavily populated area of town, hoping to attract more consumers.

A company offers 40% off with a $60 or more purchase.
A company offers 40% off with a $60 or more purchase.

A company sells a product for $6.99 rather than $7.00.

Answer 1

The example of psychological pricing is:

**A company sells a product for $6.99 rather than $7.00.**

This pricing strategy is designed to make the price appear lower than it actually is, which can encourage consumers to make a purchase.