In a down economy, a local florist surveys her customers to determine the amount they feel comfortable spending for a bouquet of flowers. Then she displays bouquets costing that exact amount in her refrigerated case. This is an example of:
A) Reference price
B) Line price
C) Bundle price
D) Leader price
E) Demand-backward price

Question

Quizplus · Accepted Answer

This is an example of demand-backward pricing, where the price point is determined first based on customer demand or expectation, and then the product (in this case, a bouquet of flowers) is tailored to meet that price point.

In a Down Economy, a Local Florist Surveys Her Customers