Answer :
Final answer:
B. Odd-even pricing
The pricing strategy that uses price points to make a product appear less expensive is called odd-even pricing, where prices end in an odd number such as .99 to create a psychological impression of lower cost.
Explanation:
The pricing strategy that uses price points to create the impression in consumers' minds that the product is less expensive than it really is, is known as odd-even pricing. This strategy involves setting prices that end in odd numbers, such as .99 or .97, instead of round numbers. The psychological impact of this pricing makes the product seem cheaper. For instance, $2.99 is perceived to be closer to $2 than to $3, even though it is just one cent away from $3. This pricing method is widely used in retail to encourage consumer purchases by creating the illusion of affordability and value.