A reference price is
A) the actual price.
B) the price against which buyers compare the actual selling price.
C) the manufacturer's cost.
D) a cumulative quantity discount price.
E) the external horizontal fixed price.

Question

Quizplus · Accepted Answer

A reference price is a price against which buyers compare the actual selling price of the product. It can be the previous price, the price of a competitor, or an expected price range. It helps the buyers perceive the actual selling price as either a good deal or an overpriced product.

A Reference Price Is