Bella Luna is a specialty baby furniture store.Most of the items in the store are designer,and,therefore,tend to be more expensive than other baby furniture.Recently Bella Luna started to put the manufacturers' suggested retail price next to the price it charges to show the savings.Bella Luna is using ___________________.

Question

Quizplus · Accepted Answer

As in price bundling, it can be useful for customers to have some type of comparative price when considering a product purchase. Such a comparison is referred to as reference pricing and, in the case of price bundling, the reference price is the total price of the components of the bundle if purchased separately versus the bundled price. The savings would be expected to stimulate purchase of the bundle so long as the perceived value realized is sufficient.

Bella Luna Is a Specialty Baby Furniture Store