A price tag states that an item’s MRSP is $100 but that its markdown is $40. This is an effective sales strategy because... O. a. discounts anchor buyers to the lowest price, so they are willing to pay more. O. b. the buyer is anchored to the higher price, so the lower price feels like a good deal. O. c. a higher price is a reference point that is never considered again. O. d. retailers know that consumers do not think about costs relatively.
A price tag states that an item’s MRSP is $100 but that its markdown is $40. This is an effective sales strategy because... O. a. discounts anchor buyers to the lowest price, so they are willing to pay more. O. b. the buyer is anchored to the higher price, so the lower price feels like a good deal. O. c. a higher price is a reference point that is never considered again. O. d. retailers know that consumers do not think about costs relatively.
Micro Economics For Today
10th Edition
ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter6: Consumer Choice Theory
Section: Chapter Questions
Problem 4SQ
Related questions
Question
A price tag states that an item’s MRSP is $100 but that its markdown is $40. This is an effective sales strategy because...
O. a. discounts anchor buyers to the lowest price, so they are willing to pay more.
O. b. the buyer is anchored to the higher price, so the lower price feels like a good deal.
O. c. a higher price is a reference point that is never considered again.
O. d. retailers know that consumers do not think about costs relatively.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Recommended textbooks for you
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning