Cal's pricing approach is called psychological pricing. This strategy involves setting prices that have a psychological impact, making customers perceive prices in a certain way, such as seeing a price of $19.99 as significantly more appealing than $20.00.
Cal believes that customers in his culinary supply shop find certain prices very appealing. He believes that customers do not really notice the difference in prices of products priced between $15.00 and $19.99. Therefore, Cal prices products at the top of this range. Cal's pricing approach is called Blank______.
Multiple choice question.
bait pricing
leader pricing
psychological pricing
prestige pricing
1 answer