Ochre Inc.had marked its refrigerators at $729.94 as the original price.This was close to the standard price for refrigerators of the same quality in the market.Later, the price is brought down to $650.99.A customer compares Ochre's marked-down price with the original price and perceives an increased value.This is an example of:
A)everyday low pricing.
B)external reference price.
C)high/low pricing.
D)market penetration pricing.
E)price skimming.

Question

Quizplus · Accepted Answer

This is an example of external reference pricing, where customers compare the current price of a product with its original price or the prices of similar products in the market. The customer perceives an increased value because the discounted price is lower than the original price.

Ochre IncHad Marked Its Refrigerators at $729