Question

Pricing Strategies A & B is a public limited company. It produces breakfast cereal all over the world. The costs of producing each box of cereal is $1. The cereals are sold to the shops at a price of $2 per box. The price of competitor’s cereals range from $1.90 to $2.50 a box. The Marketing Manager says ‘we should change to psychological pricing strategy’ to increase sales. a) Define the term ‘psychological pricing strategy’. b) Name two other pricing strategies that A & B could use to sell the breakfast cereal. c) Identify and explain two reasons why A & B are selling the breakfast cereal at a higher price to how much it costs them to manufacture. d) Identify and explain two factors A & B should take into account when deciding which pricing strategy to use. e) Do you think that changing to psychological pricing strategy will increase sales? Justify your answer.

Answer 1

Answer:

Sorry

I can't understand business studies.

please mark me as the BRAINLIEST.