A Macy's manager designs the casual clothing department such that one of Macy's private label pairs of jeans, priced at $24.99, is positioned next to a national brand of jeans, such as Levi's, priced at $39.99. Which of the following strategies is the manager attempting to accomplish?
A) Everyday low prices strategy
B) Odd-even pricing strategy
C) Prestige pricing strategy
D) Special-event pricing strategy
E) Reference pricing strategy

Question

Quizplus · Accepted Answer

The manager is using reference pricing strategy by placing a lower-priced private label next to a higher-priced national brand to make the private label appear as a better deal.

A Macy's Manager Designs the Casual Clothing Department Such That