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miks miks
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Posts: 346
A week ago

Question 1.

What is odd pricing? Why do some merchants use odd pricing?



Question 2.

Many book publishers use cost-plus pricing to establish prices for some of their books. Would you expect a publishing company to use a strict cost-plus pricing system for all its books? How might you determine if a publishing company actually does use cost-plus pricing for all its books?

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Answer verified by a subject expert
jackjohnson74jackjohnson74
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Posts: 323
A week ago
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Answer 1

Odd pricing is the practice of charging prices that aren't round numbers, especially prices ending in 9 or 5 rather than 0. One important reason for odd pricing is to give buyers the illusion that they are paying significantly less: $99.99 seems a lot less than $100 to some people.



Answer 2

We should not expect a publishing company to use cost-plus pricing for all its books. We can see evidence that cost-plus pricing is not always used by looking at prices of the same book in different markets (for example, the United States and European markets), or by noting that best sellers usually sell for lower prices, or that the relative prices of some books change over time.

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