If you go to a fancy steak house and see a hamburger on the menu for $1.19 or if you go to a fast food restaurant and see a hamburger on the menu for $24.00, you'd think something was not right. Marketers understand you are comparing those posted menu prices to your own
A) learned dining costs.
B) reference price.
C) perceived cost.
D) expected value.

Question

Quizplus · Accepted Answer

The correct term for the price you compare against when evaluating a product's price is "reference price." This is the price you expect to pay based on past experience or market norms.

If You Go to a Fancy Steak House and See