Which of the following best explains why Delicia Co., a manufacturer of potato chips, prices each bag of potato chips at 99 cents rather than $1.00?
A) To encourage consumers to think these chips are less expensive
B) To attract those consumers who are not too keen about the quality of the chips
C) To create a signal that these chips are exceptionally fine
D) To increase sales by offering the chips at a discounted price

Question

Quizplus · Accepted Answer

Pricing the chips at 99 cents rather than $1.00 creates a perception among consumers that the chips are less expensive, which may attract more customers and increase sales. This is a common marketing tactic known as psychological pricing.

Which of the Following Best Explains Why Delicia Co