A firm is using Blank______ pricing when it prices its software at $499, hoping that consumers perceive the price as "something more than $400" rather than "about $500."

Question

A firm is using Blank______ pricing when it prices its software at $499, hoping that consumers perceive the price as "something more than $400" rather than "about $500."
Multiple choice question.

odd-even

customary

penetration

loss leader

GPT-4o mini · Answer

The correct answer is **odd-even** pricing. This pricing strategy involves setting prices that are just below a round number (e.g., $499 instead of $500) to make consumers perceive the price as significantly lower than it actually is.