When Abe goes shopping, he comes across a T-shirt that is priced at $35. Although he wants to buy it, judging from the material used, he feels that the T-shirt should only cost $20. What reference price is Abe using here?
What will be an ideal response?
Abe perceives $20 to be the "fair price" for the product.
You might also like to view...
The steps that consumers practice to gradually distance themselves from things they treasure so that they can sell or recycle them are called ________
A) recycling instincts B) tangential cycling C) divestment rituals D) underground reinvestments
Placing a female wearing a bikini in an advertisement for power tools is an example of:
A) a subliminal sexual cue B) a decorative model C) overt sexuality D) sexual suggestiveness
For the first quarter of the year, the price of the company's most popular e-reader was $129.00. The company sold 750,000 units at this price. For the second quarter, the company decided to reduce the price of the e-reader to $109.00. At this price point, the company sold 1.5 million units indicating that demand for the product is
A. elastic. B. inelastic. C. stable. D. marginal. E. unstable.
Sally is looking at her company's practices and performance in a specific area and comparing them with other companies. Sally is engaged in the process of benchmarking.
Answer the following statement true (T) or false (F)