Retailers use __________ extensively. This occurs when the retailer compares sale prices to regular prices, such as when Best Buy promotes a DVD player as "Regularly $99, Now $49."
A) reference pricing
B) EDLP
C) odd pricing
D) value-based pricing
E) sale pricing

Question

Quizplus · Accepted Answer

Reference pricing is used by retailers to show customers the savings they can achieve by purchasing items at a sale price compared to the regular price. This strategy helps consumers perceive the value of the deal they are getting, as illustrated by the example of a DVD player being advertised with a significant discount from its regular price.

Retailers Use __________ Extensively