A company has marked its refrigerators at $729.94 as the original price.The sales price has been marked at $650.99.Because the customer compares the sales price with the original price, he identifies an increased value.This is an example of:

Question

Quizplus · Accepted Answer

External reference price is the price that a customer uses as a comparison to evaluate the value of a product or service. In this case, the customer is comparing the sales price of the refrigerator to the original price, which is an example of external reference pricing.

A Company Has Marked Its Refrigerators at $729