Jared's, an exclusive deli, marked down its smoked sausages from $9.99 to $6.99 in a prominently displayed poster at its smoked meats section.When consumers viewed the sale price, they tended to pick more smoked sausages than they required.This is an example of strategy using:
A)everyday low price.
B)external reference price.
C)high/low pricing.
D)market penetration pricing.
E)rebates.

Question

Quizplus · Accepted Answer

External reference price is a pricing strategy that sets a price for a product based on the consumer's perception of the product's value. In this case, the consumer's perception of the value of the smoked sausages was based on the original price of $9.99. When the price was marked down to $6.99, the consumer perceived the sausages to be a good value, and they purchased more than they needed.

Jared's, an Exclusive Deli, Marked Down Its Smoked Sausages from $9.99