Lucy buys a new dress at T.J. Maxx that has a price tag with "Compare at $150.00. Our Price $89.99." This is an example of the use of
A) internal referencing.
B) cumulative discounts.
C) seasonal discounts.
D) base-point pricing.
E) an external reference price.

Question

Quizplus · Accepted Answer

The price tag with "Compare at $150.00. Our Price $89.99" is an example of an external reference price, as it compares the original or reference price of the item (in this case, $150.00) to the sale or discounted price (in this case, $89.99) offered by T.J. Maxx.

Lucy Buys a New Dress at T