When examining products, consumers compare an observed price to an internal reference price they remember or an external frame of reference.

Question

Quizplus · Accepted Answer

This statement is true. Consumers use reference prices to evaluate whether a product's price is fair, reasonable, or a good deal. Reference prices can be based on the consumer's memory of past prices, advertised sale prices, or the price of a similar product from a competitor.

When Examining Products, Consumers Compare an Observed Price to an Internal