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Dunkin’ Donuts advertisements often refer to higher-priced Starbucks coffee options. This is an example ofMultiple Choicepsychological pricing.price discounting.reference pricing.price skimming.

Question

Dunkin’ Donuts advertisements often refer to higher-priced Starbucks coffee options. This is an example ofMultiple Choicepsychological pricing.price discounting.reference pricing.price skimming.

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Solution

This is an example of reference pricing.

Reference pricing is a strategy where a product or service is compared with a more expensive alternative to make the potential customer feel they are getting a good deal. In this case, Dunkin’ Donuts is comparing their prices to the higher-priced Starbucks coffee options to make their own prices seem more attractive and affordable.

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