Question

In blank pricing, an organization sets a price a few dollars or cents under an even number, such as at $3.99.

a) Odd

b) Even

c) Round

d) Prestige

Answer 1

The pricing strategy described in the question is called $3.99. In this pricing strategy, an organization sets a price a few dollars or cents under an even number, such as at $3.99. This strategy is commonly used in retail to make the price appear lower to consumers.

Step-by-step explanation:

The pricing strategy described in the question is called $3.99. In this pricing strategy, an organization sets a price a few dollars or cents under an even number, such as at $3.99. This strategy is commonly used in retail to make the price appear lower to consumers. For example, a product priced at $3.99 may psychologically seem less expensive than a product priced at $4.00, even though the actual difference is only one cent. The purpose of using this pricing tactic is to attract more customers and increase sales.