When Colleen shops at R.F. Malloy, each item has the actual price listed at the bottom of the price tag and an "original price" listed above that which is always much higher. This "original price" is an example of
A)an everyday low price.
B)a reference price.
C)the manufacturer's cost.
D)a final price.
E)the external horizontal fixed price.

Question

Quizplus · Accepted Answer

The "original price" listed above the actual price on the price tag is a reference price, which is used to create a perception of a good deal for the customer. The higher "original price" makes the actual price seem like a bargain, even though the "original price" may not necessarily reflect the true value of the item.

When Colleen Shops at R