Some Retailers Commonly Use Prices That End in Certain Numbers

question 91

Multiple Choice

Some retailers commonly use prices that end in certain numbers. They seem to assume that their customers see prices with these numbers as substantially lower. This is:

• A) odd-even pricing.
• B) demand-backward pricing.
• C) leader pricing.
• D) prestige pricing.
• E) psychological pricing.

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Definitions:

Financial Statements

Formal records of the financial activities and position of a business, person, or other entity, presented in a structured manner to allow easy understanding of financial performance.

Accounting Principle

Guiding rules and standards that form the basis of financial accounting practices, ensuring consistency, reliability, and comparability of financial statements.

Canadian Dollars

The official currency of Canada, used in financial transactions within the country.

Ethics

A set of moral principles that govern the behavior of individuals and organizations.