Which mathematical pricing strategy deliberately sets prices just below a round number (e.g., $9.99 instead of $10.00) based on the theory that consumers perceive these prices as significantly lower?

Pricing strategies in retail mathematics involve complex algorithms that balance consumer psychology, market demand, and profit margins. Modern retailers use sophisticated mathematical models to determine optimal price points that maximize revenue while remaining competitive. Test your knowledge about how mathematics influences one of the most critical aspects of retail strategy: pricing.

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Psychological pricing (also called charm pricing or odd-even pricing)
Dynamic pricing (also called surge pricing or demand pricing)
Bundle pricing (also called package pricing)
Penetration pricing (also called introductory pricing)