Psychological pricing (Odd pricing)

A pricing approach that considers the psychology of prices, pricing above competitive levels, raising an unsuitably low price to increase sales, and price lining, and not simply the economics; the price is used to say something about the product. Odd pricing, another psychological pricing strategy, is commonly used in retailing. Odd pricing sets prices at uneven (or odd) amounts, such as 990 rupees, rather than even amounts. The rationale for odd pricing is that it suggests lower prices and, as a result, yields greater sales than even pricing.