QPractice question
In the The Economist subscription pricing example, The Economist subscription pricing primarily demonstrates which concept?
  1. A.Bundle Pricing
  2. B.Psychological Pricing ✓
  3. C.Competition-Based Pricing
  4. D.Price Skimming
Why this answer:

The Economist subscription pricing is the textbook illustration of Psychological Pricing. The detailed walkthrough is in the concept guide. The other options are valid concepts but do not match the specific mechanics in this example.

How to think about questions like this

Application questions test whether you can connect a real-world example to the right framework. The trick is to ignore the surface details (industry, company name) and focus on the underlying mechanic the example illustrates.

For Psychological Pricing specifically, look for the signal: Customer perception of price is shaped by presentation, not just amount. That signal is what distinguishes the right answer from plausible-sounding alternatives.

Editor's note Want a deeper walkthrough? Our editors recommend pairing this with Psychological Pricing for a worked example you can adapt to your assignment.

Underlying concept

Concept · Pricing Psychological Pricing

More practice in Pricing Strategy

Practice · Pricing Strategy Pricing Strategies — Overview — Definition Practice Practice · Pricing Strategy Pricing Strategies — Overview — Application Practice Practice · Pricing Strategy Cost-Plus Pricing — Definition Practice Practice · Pricing Strategy Cost-Plus Pricing — Application Practice Practice · Pricing Strategy Value-Based Pricing — Definition Practice Practice · Pricing Strategy Value-Based Pricing — Application Practice Practice · Pricing Strategy Competition-Based Pricing — Definition Practice Practice · Pricing Strategy Competition-Based Pricing — Application Practice