Retail Prices are often expressed as odd prices: a little less than a round number, e.g. $19.99 or £6.95.Psychological pricing is a theory in marketing that these prices have a psychological impact that drivesdemand greater than would be expected if consumers were perfectly rational.RESEARCH SUPPORTING ODD PRICING THEORYIn a study, the perceived value of all the numbers between 1 and 100 were studied, and 77 was shown tohave the lowest perceived value relative to its actual value.RETAILING/ODD PRICERetailing consists of the sale of goods/merchandise for personal or household consumption either from afixed location such as a department store or kiosk, or away from a fixed location and related subordinatedservices. In commerce, a retailer buys goods or products in large quantities from manufacturers orimporters, either directly or through a wholesaler, and then sells individual items or small quantities to thegeneral public or end user customers, usually in a shop, also called store. Retailers are at the end of thesupply chain. Marketers see retailing as part of their overall distribution strategy.SHOPS AND STORESThere are three major types of retailing, two of which have buildings that the customer can visit to dobusiness with.The first is counter-service, once the only type of shop, but now rare except for selected items.The second, and now more widely used method of retail, is self-service.RETAIL PRICINGThe pricing technique used by most retailers is cost-plus pricing.This involves adding a markup amount (or percentage) to the retailers cost. Another common technique issuggested retail pricing. This simply involves charging the amount suggested by the manufacturer andusually printed on the product by the manufacturer.