The price that an international buyer pays for the product, or sees being demanded for a product, becomes the ________ price against which other products are likely to be evaluated.

Question

Quizplus · Accepted Answer

A reference price is the price that customers believe a product should be sold for based on their previous experiences or external information, such as prices of similar products. In the context of international marketing, the price that an international buyer pays for a product becomes the reference price against which other products are likely to be evaluated. This means that if a product is priced significantly higher than the reference price, customers may perceive it as overpriced and may choose to buy a similar product that is priced closer to the reference price. Therefore, understanding the reference price in a specific market is crucial for a company's pricing strategy.

The Price That an International Buyer Pays for the Product