Pricing a product at $399.99 instead of $400 to make the customer view the price as in the $300 range instead of the $400 range is an example of:
A)price lining
B)deception pricing
C)minimized pricing
D)red-line pricing
E)psychological pricing

Question

Quizplus · Accepted Answer

This is an example of psychological pricing, a strategy that leverages human psychology to encourage purchases. Pricing a product at $399.99 instead of $400 makes it seem cheaper to customers, as they perceive it to be in the $300 range, thus making it more appealing.

Pricing a Product at $399