Why are Reference Prices Important?

Reference prices are an important concept in marketing. Reference prices are the expected and acceptable price range that a consumer will pay for a particular product and/or brand. If a product is priced well above or well below the expected price range, then the consumer is unlikely to see value in the product and is unlikely to purchase

The Elimination-by-Aspects Decision Rule

The elimination-by-aspects decision rule is a non-compensatory approach to decision-making for consumers. This decision rule works much like a knock-out competition. A consumer will work through the product attributes being considered one by one – starting with the most important product attribute to them.

The Affect Referral Rule

The affect referral decision rule is considered a non-compensatory approach to decision-making for consumers. However, it is quite unique from the other non-compensatory decision rules in that it does NOT rely upon the evaluation of individual product attributes