A company that announces a manufacturer's suggested retail price and then offers a discount off that price is using ________ pricing.
A) psychological
B) dynamic
C) reference
D) prestige
E) loss leader

Question

Quizplus · Accepted Answer

This type of pricing is called reference pricing, where the company establishes a reference point (in this case, the manufacturer's suggested retail price) and then offers a discount off that price. This helps the company to communicate value to the customer and create a sense of urgency to buy.

A Company That Announces a Manufacturer's Suggested Retail Price and Then