Psychological Pricing
Setting prices using psychological principles to influence perception.
Real World
Apple prices the iPhone 15 at £799 rather than £800 — the £799 price point psychologically anchors consumers below the £800 threshold, making it feel more affordable.
Exam Focus
Explain the psychological mechanism (perceived value, anchoring) not just that '£9.99 feels cheaper than £10' — depth earns marks.
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