Question

Alberton's supermarket prominently displays the prices of its brands side-by-side with prices you may pay at competing grocery stores for the same brand. Albertson's hopes to stimulate added sales by inducing the perception that consumers are getting a 'deal.’ Alberston's is using:

Answer 1

Answer: Reference pricing

Step-by-step explanation: In simple words, reference pricing refers to a pricing strategy under which a supplier of a commodity charges the price lower than its competitors. That lower price works as a reference for the firm to attract customers from the competitors.

Sometimes the producers initially sets higher price of the commodity under reference pricing strategy and then offers heavy discounts on such high prices, a customer makes perception that the discount deal is a better deal than other producers.

Hence from the above we can conclude that the given case depicts reference pricing.