Psychological Pricing

Read the following examples. Determine the type of psychological pricing used as the pricing strategy:

1.Customers are so used to purchasing regular cheeseburgers for $1 at fast-food restaurants that McDonald's maintains this price even when meat costs rise.

2.Walmart places its Great Value brand next to a competing brand that costs more to demonstrate its value.

3.Rolex sets prices at high levels to create an image of status and exclusivity.

4.To get customers to purchase more, Carl's Jr. offers its hamburger combination meals at a lower price than what they would be if the items were bought individually.

5.Target tries to compete against other retailers by emphasizing the fact that it always offers quality products at low prices.