Advertising Exam Review - Psychological Pricing

Front

What is the odd-even pricing strategy?

Back

A pricing technique where products are priced at a value ending in an odd number or an even number.

Front

What is charm pricing also known as?

Back

Psychological pricing

Front

What is the main goal of prestige pricing?

Back

To create a perception of high quality and exclusivity

Front

What is anchor pricing?

Back

A pricing strategy where a high-priced item is placed next to a lower-priced item to make the lower-priced item seem like a better deal.

Front

What is decoy pricing?

Back

A pricing strategy where a higher-priced item is placed next to a similar but lower-priced item to make the lower-priced item seem like a better value.

Front

Which pricing technique involves setting prices just below a whole number, such as $9.99 instead of $10?

Back

Just-below pricing

Front

What is the psychological effect of odd-even pricing strategy?

Back

Creates a perception of a lower price and encourages customers to make a purchase.

Front

Which pricing technique is often used in restaurant menus to highlight the most expensive item?

Back

Anchor pricing

Front

What is the purpose of decoy pricing in consumer decision making?

Back

To influence consumer decision making by presenting a third option that makes the original option look more attractive.

Front

Which pricing technique involves setting a high initial price to create a perception of exclusivity and luxury?

Back

Premium pricing