Gabriella Sax believes that customers in her dress shop find certain prices very appealing.

Between these price levels, all prices are seen as roughly the same-and price cuts in these ranges generally do not increase the quantity sold (i. e., the demand curve tends to drop vertically within these price ranges).

Therefore, Sax prices her items as close as possible to the top of each such price range.

This is:

A. bait pricing.

B. prestige pricing.

C. leader pricing.

D. psychological pricing.

E. odd-even pricing.

Letter D is correct. Psychological pricing.

Explanation:

Psychological pricing is a marketing and pricing strategy whose fundamental principle is to have a favorable psychological impact on the consumer.

A consumer buying decision process takes into account the characteristics of the product in association with price, so that there is a favorable balance between a product that meets its needs and the price determined for it.

Because of this psychological pricing emerges as a strategy to impact the consumer and influence the purchase, an example of this strategy is the use of broken and non-round values, for example a product that costs $ 99.99 has a greater impact on consumer perception than a product. product costing $ 100.00.

Although it is an inviting strategy for influencing the purchasing decision process, a company should combine this strategy with others that emphasize the characteristics and value of the product or service so that the essentials that determine the purchase are balanced, and thus there is balance and positive results.