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Nissan sets the suggested price of an automobile at $19,999, rather than $20,000. This type of pricing is extremely common for consumer goods. This is an example of _______. a. psychological pricing or odd-even pricing b. one-part pricing c. price lining d. price skimming

Sagot :

A) Psychological pricing.

How does psychological pricing work?

The technique of putting prices just below a whole number is known as psychological pricing. The theory behind this approach is that since customers don't round up these prices, they will perceive them as being lower than they actually are. Customers typically ignore the last few digits of a price because they process prices from the leftmost to the right. When the fractional portion of a price is displayed in a smaller font than the rest of the price, this impact seems to be amplified. Setting the price of an automobile at $19,999 rather than $20,000 is an example of psychological pricing. Pricing of this kind is very typical for consumer goods.

Learn more about prices with the help of the given link:

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