Question

If you set an odd price for your product, hoping that customers will round down, what type of pricing strategy are you using?

Question 6 options:

price skimming


promotional pricing


penetration pricing


psychological pricing

Answer 1

The pricing strategy you are using when you set an odd price for your product, hoping that customers will round down, is known as **psychological pricing**. This strategy takes into account the psychological impact of pricing on consumers, often using pricing techniques designed to create a perception of value or a bargain.