It can be useful for customers to have some type of comparative price when considering a product purchase. Such a comparison is referred to as ________ pricing, which in thecase of price bundling is the total price of the components of the bundle if purchased separately versus the bundled price.

A reference price is the amount or price that a purchaser is willing to pay for a good or service in relation to other competitors and previously advertised prices. In this case, it is the price that the consumer feels justified to pay for a particular product. Thus, it is important for customers to have some form of comparative prices for any products they are considering to buy. When they are that comparative price, the comparison is what we call reference pricing. High volume purchasers usually use this method when getting goods from their suppliers.

ayoogunyemi ayoogunyemi · Answer 2 · 2020-04-19T03:09:42+02:00

Answer:

Reference pricing

Explanation:

Reference pricing is a pricing system in which a purchaser buys an item at a price lower compared to the price of other competitor' product.

In this practice , the buyer uses the advantage of a large volume transaction to negotiate a high discount from the manufacturer . Moreover , the buyer needs to have an access to prices and other related information in the economy market to do this.

At the end , he buys the collective products at a cheaper rate compared to standard unit price of the same products