Question

La belle released a cut glass bottle of perfume at $299 per item, even though its major competitor prices its signature scent at $99 per item. la belle reasons that customers in search of luxury goods will prefer its product because they are more likely to believe high price indicates superior quality. what price adjustment strategy is evident in its reasoning

Answer 1

psychological pricing

Answer 2

psychological pricing

Explanation:

Psychological pricing is the strategic approaches of setting costs lower than an entire number. The thought behind mental valuing is that clients will peruse the somewhat brought down cost and treat it lower than the value really is. A case of mental evaluating is a thing that is estimated $3.99 yet passed on by the purchaser as 3 dollars and not 4 dollars, treating $3.99 as a lower cost than $4.00.

Mental valuing systems come in numerous structures. Here are four instances of mental estimating systems:

1. Artificial Time Constraints

2. Charm Pricing

3. Innumeracy