A retailer decides to reduce the price of a sport coat that normally costs $98.The reduction in price is $3.The storeowner believes that the reduction will catch the eye of the value shopper.If the sport coat does not sell,the retailer might wish to consider which of the following before making another price change?
A) Subliminal perception
B) The figure-ground principle
C) The golden triangle
D) Weber's law

Question

Quizplus · Accepted Answer

Weber's law states that the just noticeable difference between stimuli is proportional to the magnitude of the stimuli. In the case of the sport coat, if the reduction in price did not result in an increase in sales, the retailer may need to consider a larger reduction in price to make a noticeable difference in the minds of potential customers, as opposed to a small reduction like $3.

A Retailer Decides to Reduce the Price of a Sport