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-even pricing strategy
C) Prestige pricing strategy
D) Special-event pricing strategy
E) Reference pricing strategy

Question

Quizplus · Accepted Answer

The manager is attempting to use a reference pricing strategy by positioning a lower-priced private label pair of jeans next to a higher-priced national brand to create a perception of value and encourage customers to purchase the private label option.

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