University of Central Florida (UCF) MAR3023 Marketing Practice Exam 4

The chosen answer, which addresses deceptive reference prices, accurately identifies a pricing strategy that can mislead consumers. This approach involves setting a higher reference price that consumers believe they are saving from, even though the actual price might not have ever been at that reference level. For instance, a retailer might display a product with a marked-up suggested retail price next to a discounted price, suggesting that customers are receiving a significant bargain. This creates a perception of value that might not reflect the true market situation, encouraging consumers to buy based on the belief they are getting a better deal.

This strategy contrasts with other pricing methods, such as loss leader pricing, where products are sold at or below cost to attract customers, thereby actually aiming to create a real bargain atmosphere rather than misleading consumers. Price fixing involves an agreement between competing businesses to set prices at a specific level, which is illegal in many jurisdictions and does not involve deceptive marketing tactics aimed at consumers. Uniform delivered pricing simplifies the pricing structure by charging the same delivery price to all customers, which does not inherently involve any deception regarding perceived savings.