While shopping at the mall, Jane was asked by one of the sales representatives at the cosmetics counter to try out a new lipstick that her company was test marketing. The company representative asks her how much she would be willing to pay for the lipstick. After trying it out, Jane is of the opinion that $5 is just the right price for it. What type of a reference price is Jane using?
A) usual discounted price
B) fair price
C) maximum retail price
D) last price paid
E) historical competitor price

Question

Quizplus · Accepted Answer

Jane is using a fair price as her reference price, as she is evaluating the value of the lipstick based on her perception of what a reasonable price should be. The other options (usual discounted price, maximum retail price, last price paid, historical competitor price) do not fit the scenario described in the question.

While Shopping at the Mall, Jane Was Asked by One