Jameson purchased an alarm system for his car during a promotion. He considered the price after the promotion to be very attractive. However, he later learned that the firm set an artificially high reference price for the alarm system just before the promotion to make the advertised sale price more attractive. Jameson just experienced ________.
A) price fixing
B) price discrimination
C) deceptive pricing
D) bait and switch
E) predatory pricing

Question

Quizplus · Accepted Answer

Jameson experienced deceptive pricing, where the firm set an artificially high reference price to make the sale price appear more attractive. This is a common tactic used by retailers to create a sense of urgency among consumers and increase their willingness to buy.

Jameson Purchased an Alarm System for His Car During a Promotion