A manager at Kohl's discovers that Macy’s has reduced the price of its children's Levi's from $31.99 to $24.99, according to an advertisement in the Sunday newspaper. She immediately phones her store and instructs the salesperson on duty to put a sign up next to their children's Levi's that reads, "SALE: $24.99." This is an example of what pricing strategy?a.Reference pricingb.Secondary-market pricingc.Random discountingd.Comparison discountinge
Reference price is the price at which a store owner sells a particular product, giving a hefty discount compared to its previously price. Its aim is to get more customers and increase competition.
