The pricing strategy in which prices are adjusted for psychological effect is classified as?
Correct answer: B. psychological pricing
- A. segmented pricing
- B. psychological pricing
- C. promotional pricing
- D. geographical pricing
Explanation
Psychological pricing sets prices with the buyer's mental response in mind, such as using 999 instead of 1,000 or signalling prestige through a high price. Segmented and geographic pricing vary prices for different customers or locations rather than primarily for psychological effect.
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