Dag Runs a Hardware Store

Dag runs a hardware store. He learned that customers process the price of $9.99 as significantly lower than the price of $10.00 because of the reduced digit count in the price point. Accordingly, he follows this rule to set up the prices for all products. Dag uses a ________ strategy.

A) psychological pricing
B) one-price strategy
C) variable pricing
D) everyday low pricing (EDLP)
E) high/low pricing

Correct Answer:

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