Finance-Read Marketing in Action 9.1 “Pricing cues are customer clues”

| January 31, 2017

Question
Read Marketing in Action 9.1 “Pricing cues are customer clues” in Ch.9 of the textbook (p.281-2) and answer the following questions:

Reference prices are those that are carried in customers’ minds and which they refer to when they look for a given product. Why might reference prices be used when buying some products and not others? Why might a higher price signal higher quality to many buyers?

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