Psychological Pricing Involves

question 158

Multiple Choice

Psychological pricing involves

• A) setting an initial low price to establish a new product in the market.
• B) setting prices in uneven dollar amounts.
• C) setting a limited number of prices for certain categories of products.
• D) setting an initial high price to cover new product costs and generating a profit.
• E) taking advantage of the fact that consumers do not always respond rationally to stated prices.

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Definitions:

Cognitive-behavioral

Pertaining to a therapy approach that addresses dysfunctional emotions, behaviors, and cognitions through a goal-oriented, systematic process.

Psychodynamic Perspective

A psychological approach that emphasizes the systematic study of the psychological forces underlying human behavior, feelings, and emotions and how they might relate to early experience.

Psychoanalysis

A technique of treating psychological disorders and gaining insight into the subconscious mind, developed by Freud, that involves free association, dream interpretation, and analysis of resistance and transference.

Free Association

A psychoanalytic technique where patients are encouraged to verbalize thoughts as they come, without censorship, to uncover unconscious desires or issues.