A Macy's manager designs the casual clothing department such that one of Macy's private label pairs of jeans, priced at $24.99, is positioned next to a national brand of jeans, such as Levis, priced at $39.99. What is the manager attempting to accomplish?
A)Everyday low prices strategy
B)Odd-number pricing strategy
C)Price skimming strategy
D)Special-event pricing strategy
E)Reference pricing strategy

Question

Quizplus · Accepted Answer

The manager is using the reference pricing strategy by positioning the private label jeans at a lower price point next to the higher-priced national brand jeans. This allows the private label jeans to be perceived as a better value and encourages customers to consider purchasing them.

A Macy's Manager Designs the Casual Clothing Department Such That