Jared's, an exclusive delicatessen, marked down its smoked sausages from $9.99 to $6.99 in a prominently displayed poster in its smoked meats section.When consumers viewed the sale price, they were inclined to place smoked sausages in their shopping carts.This is an example of:

Question

Quizplus · Accepted Answer

External reference price is the price that consumers use as a benchmark to evaluate the fairness of a current price. In this case, the consumers used the original price of $9.99 as a reference point to determine that the sale price of $6.99 was a good deal.

Jared's, an Exclusive Delicatessen, Marked Down Its Smoked Sausages from $9.99