Identify the concept related to the psychological aspects of price.

Question

Quizplus · Accepted Answer

Reference price is the concept related to the psychological aspects of price. It refers to the price that consumers perceive as the normal or fair price for a product or service, based on their past experiences, expectations, and external cues. Marketers can use reference prices to influence consumers' perceptions of value, by setting prices below, at, or slightly above their expectations. This can create the impression of a good deal, a discount, or a premium quality, depending on the context and the target audience. Skimming price, prestige price, and penetration price are other pricing strategies that are not directly related to psychological factors.

Identify the Concept Related to the Psychological Aspects of Price