Pricing a Product at $399

question 148

Multiple Choice

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

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Definitions:

Validity

The extent to which a concept, conclusion, or measurement is well-founded and likely corresponds accurately to the real world.

Assumption

An accepted fact or hypothesis considered to be true without proof for the purpose of analysis.

Data Analysis

The process of examining, cleaning, transforming, and modeling data with the goal of discovering useful information, informing conclusions, and supporting decision-making.

Observations

The act of carefully watching, listening, or noting phenomena as part of a research or study to gather information and insights.