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

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