Select the correct answer.

Which pricing strategy is a store using when it sells shoes at $79, $99, and $299?

A. economy pricing

B. penetration pricing

C. premium pricing

D. psychological pricing

E. price skimming

D

Explanation:

The action being used here is the psychological pricing action.

It tends to appeal to the buying reasoning of the buyer. In this system of pricing, the prices of goods are intentionally placed using odd figures. This is because, it is believed that setting prices at these type of price ranges have a psychological effect on the consumer

The 0.01 cent difference would appeal to the psychological thinking of the consumer, thereby making him purchase the goods which in fact is same price when looked at technically

All in all, the pricing system is looking to make the buyer take a decision which will favor the seller as the fractional bits taken off the price would appear to the customer as if he's purchasing at a lesser price which is technically not so