Title: Identify the psychological effects of pricing.
Course: Strategic Marketing (12152) > Section: Pricing Products and Services

Identification should include

- psychological pricing techniques
  - prestige pricing
  - odd-even pricing
  - multiple-unit pricing
  - buy one get one (BOGO)
  - everyday low prices (EDLP)
- psychological effects
  - customer perceptions

  - product image
  - the consumer’s willingness to pay
  - loss leader
  - special event
  - rebates and coupons.

Process/Skill Questions:

- Why would a business want to charge more than a competitor for a similar product?
- Why does psychological pricing work?
- Why is psychological pricing a competitive technique?
- Why would a business want to use a loss leader?
- How does psychological pricing influence the sale of a product/service?