Explain how pricing is related to psychology, describing how at least two pricing practices that appeal to customers on a psychological level

What will be an ideal response?


Pricing strategy depends on how people make purchase decisions, a process that is not always rational. Two examples of pricing practices that use psychology are odd-even pricing and price bundling. Using odd-even pricing, a marketer sets prices at fractional numbers instead of whole ones. Research has shown that consumers will buy significantly more of an item at $9.99 than at $10.00, even though the difference is only one cent. Using price bundling, a marketer makes two or more products appear more attractive at a single price than at two separate prices. The price bundle may offer a discount, or it may offer relief from the effort of product search and price evaluation for multiple items.

Business

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Answer the following statement true (T) or false (F)

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Questions such as "What business are we in?" and "What customers should we serve?" are typically addressed in the ________ stage

A) operational planning B) strategic planning C) market targeting D) functional planning E) marketing planning

Business

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A. how profitable the IC is. B. the distance between the home country and the host country. C. how large the IC is. D. how well the executives know company policies.

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The International Court of Justice is composed of 15 judges who serve nine-year terms

Indicate whether the statement is true or false

Business