Question

If you set an odd price for your product, hoping that customers will round down, what type of pricing strategy are you using? A. Psychological pricing B. Penetration pricing C. Promotional pricing D. Price skimming

Answer 1

I'm pretty sure it's psychological pricing. That is when a price is normally odd (i.e $19.99) in hopes of having a certain psychological effect.

Penetration pricing is when a price is set low in the beginning to penetrate the market and it eventually comes up.

Promotional pricing is when there is a short time of a lower price to increase the volume of sales. Which is why chips/salsa/etc go on sale around the biggest sporting events.

Price skimming is when the price starts high and then comes down over time. Generally this is used as a tactic to make you think the price came down a bunch and you're now getting a great deal.

Answer 2

A. psychological pricing.