"Psychological Pricing" Involves Setting Prices Which End in Certain Numbers

question 141

True/False

"Psychological pricing" involves setting prices which end in certain numbers, while "odd-even pricing" is setting prices which have special appeal to target customers.

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Definitions:

Material

The substance or substances of which any physical object is composed or can be made, including metals, woods, plastics, and textiles.

Location

A specific place or position, often used in various contexts to define where something is situated or found.

Moral Hazard

A situation in which one party is more willing to take risks because the costs that may result will not be borne by them.

Adverse Selection

A situation in which asymmetric information leads to the market being dominated by inferior products or by participants who are at a disadvantage.