Furry Paws, a local pet store, places its own brand of dog food next to the more established brands. Doing so makes it obvious that Furry Paw's dog food is less expensive than the other brands, thus making it look like a better deal to customers. This is an example of

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When Furry Paws puts its less expensive brand of dog food next to the more expensive brands of dog foods, it is using reference pricing. This is a type of psychological pricing in which a lower-priced item is compared to a more expensive brand in the hopes that the consumer will use the higher price as a comparison price and thus, the lower-priced item will look like a better deal.

Furry Paws, a Local Pet Store, Places Its Own Brand