Firms Engage in Odd Pricing When They Charge Prices That

question 70

Essay

Firms engage in odd pricing when they charge prices that appear to be less than they really are; for example, charging a price of $4.95 instead of $5.00 and $.99 instead of $1.00.How have researchers tried to determine whether odd pricing is successful in convincing consumers that odd prices are less than they really are?

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Definitions:

Unaided Recall

A measure of consumer memory or awareness where respondents mention a brand without being prompted with clues or choices.

Brand Awareness

The extent to which consumers are familiar with the distinctive qualities or image of a particular brand.

Category of Need

Pertains to the classification of consumer desires or requirements that drive their purchasing behavior.

Resonance

The extent to which a brand or message meaningfully connects with or impacts its audience or target market.