A company decided to conduct a market survey for its new MP3 player that the company had priced at $150. In the survey, 95 percent of 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

This is an example of an upper-bound price, which refers to the maximum price that consumers are willing to pay for a product. In this case, the maximum price that 95% of participants in the survey were willing to pay was $100, which is lower than the actual price of the MP3 player at $150.

A Company Decided to Conduct a Market Survey for Its