If a manager designs the shoe department in a manner that one of its private label pairs of shoes, priced at $39.99, is positioned next to a well-known national brand of shoes priced at $69.99, what strategy is the manager attempting to accomplish?
A) everyday low price
B) odd-even pricing
C) prestige pricing
D) special-event pricing
E) reference pricing

Question

Quizplus · Accepted Answer

The manager is attempting to use reference pricing by positioning the private label shoes next to a well-known national brand that is priced higher. This creates a reference point for customers and makes the private label shoes, priced at $39.99, seem like a better deal.

If a Manager Designs the Shoe Department in a Manner