When Gabriella visits a Chevrolet showroom to purchase a new car, she sees a Cruze priced around $19,000 and right next to it is a Corvette priced close to $65,000. What type of psychological pricing strategy is the dealership using?
A) bundle pricing .
B) multiple-unit pricing .
C) captive pricing.
D) customary pricing.
E) reference pricing.

Question

When Gabriella visits a Chevrolet showroom to purchase a new car, she sees a Cruze priced around $19,000 and right next to it is a Corvette priced close to $65,000. What type of psychological pricing strategy is the dealership using?
A) bundle pricing .
B) multiple-unit pricing .
C) captive pricing.
D) customary  pricing.
E) reference pricing.

Quizplus · Accepted Answer

The dealership is using reference pricing by positioning the Cruze next to the expensive Corvette, causing Gabriella to perceive the Cruze as a better deal in comparison.

When Gabriella Visits a Chevrolet Showroom to Purchase a New