A company decided to conduct a market survey for its new MP3 player which it had priced at $150. However, in the survey, 95 percent of the participants said that the maximum they would pay for the MP3 player is $100. This is an example of which of the following possible consumer reference prices?
A) historical competitor price
B) expected future price
C) usual discounted price
D) upper-bound price
E) last price paid

Question

Quizplus · Accepted Answer

The 95% of the participants stating that they would only pay a maximum of $100 suggests an upper-bound price, indicating the highest price that consumers would be willing to pay for the product.

A Company Decided to Conduct a Market Survey for Its