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93. Psychological pricing is based on the premise that: certain prices or price

ID: 2569771 • Letter: 9

Question

93. Psychological pricing is based on the premise that: certain prices or price ranges make products more appealing to buyers than others b. one-price policies appeal to most people and suit mass- selling marketing programs 6. setting a limited number of prices for a selection of merchandise has a certain appeal d lower-than-normal prices as part of recurring marketing initiatives creates demand 94. An example of odd pricing would be: b selling a radar detector for $129.99 instead of $130 subtracting trade-ins from the list price. d rebates that lower total price. 95. When the price of Cheerios cereal is displayed as 14.7 cents per ounce, this is an example of pricing. odd c unit 96. When a men's clothing store sells suits at four price levels ($295, $455, $525, S650), the store's retail policy is a unit pnicing. 6product-line the same as skimming pricing, but only when a trade secret or patent is involved blower-than-normal pricing as a temporary component in the selling strategy. advertising prices that are higher than what is actually asked in-store d when a firm uses extensive promotional allowances to get channel members to promote the product 98. A retailer wants to increase the number of customers shopping in her store. Which of the following has the greatest potential for b Price flexibility e Prestige d Unit pricing 99. "Buy three shock absorbers and get the fourth free." as advertised by an auto repair shop, is an example of pricing. a promotional b variable 100. Consumers today perceive that, within price limits, there is: L a need for discounts and incentives. b obvious opportunity for psychological pricing. a direct relationship between the quality and price of a d no perceivable difference in major product brands. Answer What are the five objectives of promotion? Write your answer below

Explanation / Answer

93. The answer is option “a” – It is a fact that certain prices or price range makes products more appealing. This is because customers do not always respond rationally to stated prices.

94. The answer is option “b” – This is because Odd pricing refers to a price ending in 1,3,5,7,9 just under a round number.

95. The answer is option “c” – unit pricing. This is the system of indicating the cost of a consumer product in terms of a standard unit of measure, as so much per pound, quart, or yard, in addition to the price per can, bottle, or piece.

96. The answer is option “c” – product-line pricing. This method of pricing is used by retailers to separate goods into cost categories in order to create various quality levels in the minds of consumers.