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 Levis, priced at $39.99. What is the manager attempting to accomplish?
A) Everyday low prices strategy
B) Odd-number pricing strategy
C) Bundle pricing strategy
D) Special-event pricing strategy
E) Reference pricing strategy

Question

Quizplus · Accepted Answer

The manager is attempting to use reference pricing strategy by positioning the private label pair of jeans next to a higher-priced national brand, in order to influence customers to perceive the private label pair as a better deal or value.

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