ENTREPRENEURIAL MARKETING
MARKETING MIX
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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True
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False
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Either A or B
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None of the above
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Detailed explanation-1: -Psychological pricing can also be described as setting prices lower than a whole number-for example, $3.99 is perceived as “cheaper” than $4. The idea is that customers will perceive the slightly lower price as a deal and be motivated to make the purchase.
Detailed explanation-2: -Psychological pricing (also price ending, charm pricing) is a pricing and marketing strategy based on the theory that certain prices have a psychological impact.
Detailed explanation-3: -The theory behind psychological discounting is that customers will interpret a marginally reduced price as a lower price than it is. An item priced at $1.99 but conveyed by the consumer as 1 dollar rather than 2 dollars, treating $1.99 as a lesser price than $2.00, is an example of psychological pricing.