Which pricing strategy is specifically used to make prices appear more attractive to customers?

The chosen answer, which is psychological pricing, is effective in making prices appear more attractive to customers by leveraging consumers' emotional responses and perceptions. This strategy involves setting prices in a way that considers how customers think and feel about the prices they see. For example, setting a price at $9.99 instead of $10.00 takes advantage of the perception that the first price is significantly lower, even though the difference is only a cent. This approach plays on customers' cognitive biases, encouraging them to view the price as being a better deal than it actually might be.

In contrast, cost-plus pricing focuses on adding a markup to the cost of producing a product, which does not necessarily cater to the psychological aspects of pricing. Discount pricing, while effective in attracting customers through reduced prices, does not inherently address making prices appear more attractive through psychological techniques, as it may just imply a temporary reduction instead of an appealing price point. Lastly, value-based pricing sets prices based on the perceived value to the customer rather than just making the price seem attractive; while it can lead to attractive pricing, it does not specifically target the psychological nuances of price perception.

Overall, psychological pricing stands out as the strategy deliberately designed to influence perception by making prices feel more appealing