Question

Clark manufactured housing company charges $500 for deliveries within 50 miles and $800 for deliveries 51 to 100 miles away from their factory. the company is using a ____________ pricing tactic.

Answer 1

This situation is an example of Psychology Pricing. Psychology Pricing refers to an approach of the businessman to encourage the marketers to react on emotional levels rather than logical ones. Like with this problem, the marketers usually attracted to the first number of a price than the last.