ENTREPRENEURIAL MARKETING
PRICING STRATEGIES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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What is meant by Psychological pricing strategy?
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Items are offered at an uneven number to appear cheaper encouraging sales (eg £9.99)
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Items are sold using a special promotional offer which is brightly coloured and attracts attention
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Items are sold at production cost price to attract customers into the store and increase purchases
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None of the above
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Explanation:
Detailed explanation-1: -This strategy, often called “charm pricing, ‘’ involves using pricing that ends in “9” and “99.” With charm pricing, the left digit is reduced from a round number by one cent.
Detailed explanation-2: -Odd price odd pricing means using odd numbers for the end digits of a price. For example, a business might choose to price its product $9, 99 instead of 10$ to make the product appear much cheaper. It relies on the assumption that consumers focus only on the first digits when they look at the product price.
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