Explain how pricing is related to psychology, describing how at least two pricing practices that appeal to customers on a psychological level

What will be an ideal response?

Pricing strategy depends on how people make purchase decisions, a process that is not always rational. Two examples of pricing practices that use psychology are odd-even pricing and price bundling. Using odd-even pricing, a marketer sets prices at fractional numbers instead of whole ones. Research has shown that consumers will buy significantly more of an item at $9.99 than at $10.00, even though the difference is only one cent. Using price bundling, a marketer makes two or more products appear more attractive at a single price than at two separate prices. The price bundle may offer a discount, or it may offer relief from the effort of product search and price evaluation for multiple items.