What tactic uses fictitious higher “regular” prices to make sale prices appear better?

The tactic that uses fictitious higher “regular” prices to make sale prices appear better is known as deceptive reference pricing. This strategy involves setting a higher reference price that is not realistic or is inflated, leading customers to perceive the sale price as a bargain or significant discount. By presenting a misleading comparison, businesses can enhance the perceived value of the deal, encouraging consumers to make a purchase based on the belief that they are saving money.

Deceptive reference pricing can effectively influence consumer behavior because shoppers are often motivated by the perception of getting a good deal. When they see a product marked down from a high reference price, it creates a psychological impulse to buy, even if the actual value of the product does not warrant the original price.

Other tactics, such as loss leader pricing, bait and switch, and predatory pricing, serve different purposes in marketing strategies and do not primarily focus on creating the illusion of savings from inflated prices. Loss leader pricing involves selling a product at a loss to attract customers to buy additional items. Bait and switch refers to advertising a product at a low price to lure customers in, only to push them towards more expensive items. Predatory pricing involves setting prices low to drive competitors out of the market rather than manipulating perceptions of value