A reference price is
A) the total price including tax.
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 the price against which buyers compare the actual selling price. It is a psychological pricing strategy used by marketers to influence consumer perception and increase the perceived value of the product or service. By setting a reference price, marketers can make their actual selling price appear more reasonable or attractive in comparison.

A Reference Price Is