The manager of Hot Topics Fashion Shop has concluded that her customers find certain prices very appealing. Customers see prices above or below these levels as roughly equal--and price cuts in these ranges don't increase sales. This seems to call for

A) prestige pricing.
B) bait pricing.
C) leader pricing.
D) psychological pricing.
E) odd-even pricing.

Ans: D) psychological pricing.
Psychological pricing means setting prices that have special appeal to target customers. Potential customers see some ranges of prices as the same. So price cuts in these ranges do not increase the quantity sold. But just below this range, customers may buy more.