CLEP Marketing Practice Exam 2026 – All-in-One Guide to Achieve Top Scores!

Question: 1 / 400

What does reference price refer to?

Price a consumer expects to pay

Reference price refers to the price that a consumer expects to pay for a product based on their previous experiences, market comparisons, and the value they perceive the product to offer. It acts as a benchmark against which consumers evaluate the actual price of a product. When determining the appropriateness of a product's current price, consumers often consider this reference price to decide if they believe they are getting a good deal or if the price seems too high. This concept plays a significant role in consumer behavior, as it influences purchasing decisions and perceived value.

In this way, the reference price serves to shape expectations and assist consumers in making informed decisions while navigating the marketplace. Understanding reference price is essential for marketers as they strategize pricing and value propositions.

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Price set by competitors

Lowest price available in the market

Price at which a product was previously sold

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