A retailer decides to reduce the price of a jacket that normally costs $98.The reduction in price is $3.The store owner believes that the reduction will catch the eye of the value shopper.If the jacket 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)Golden triangle
D)Weber's law

Question

Quizplus · Accepted Answer

Weber's law is a psychological principle that suggests that a consumer's ability to perceive changes in price depends on the size or magnitude of the price change relative to the original price. In this case, the retailer reduced the price by $3, which is only 3% of the original price of $98. If the jacket does not sell, the retailer might consider adjusting the price by a larger percentage (i.e. a bigger price reduction) in order to catch the attention of value shoppers. Weber's law would be relevant in helping the retailer determine the appropriate magnitude of the price change needed to elicit a response from consumers.

A Retailer Decides to Reduce the Price of a Jacket