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
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.
