In determining the price for his company's new pocket digital camera,Matt determines what consumers consider the regular or original price for similar cameras available in the market.Matt is assessing the influence of __________ on pricing strategy.
A) improvement value
B) odd-even prices
C) everyday low pricing
D) reference prices
E) cost of ownership

Question

Quizplus · Accepted Answer

Matt is assessing the influence of reference prices on pricing strategy. Reference prices are the prices that consumers consider to be the regular or original price for a product based on their previous experiences or knowledge of similar products in the market. By considering these reference prices, companies can set their prices competitively and attract customers.

In Determining the Price for His Company's New Pocket Digital