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:

Expected Value

The predicted value of a variable, calculated as a sum of all possible values each multiplied by the probability of its occurrence.

Unit Of Measure

A standard quantity used in measuring and expressing the quantity of an element, substance, or phenomenon.

Variance

A measure of the dispersion or spread of a set of data points around their mean value; it quantifies the degree to which these points differ from the mean.

Distribution Plans

Strategies or policies set by a company or organization for delivering goods or services to customers, encompassing logistics, transportation, and channels of distribution.