Reference Prices Consumers do not evaluate price absolutely, but rather relatively Context matters! Two kinds of reference prices a External reference price a Internal Reference price11-5 Reference Prices ƒ Consumers do not evaluate price Consumers do not evaluate price absolutely, but rather relatively absolutely, but rather relatively -- Context Matters! Context Matters! ƒ Two kinds of reference prices Two kinds of reference prices ƒ External Reference price External Reference price ƒ Internal Reference price Internal Reference price