$1)$ What are the different possible consumer reference prices?

Answer: answers should be aligned with the following points and facts provided.

Although consumers have fairly good knowledge of price ranges, surprisingly few can

accurately recall specific prices. When examining prices, consumers often employ

reference prices, comparing an observed price to an internal reference price they

remember or an external frame of reference such as a posted "regular retail price."

These reference prices include:

$$ Fair price $-$ what consumers feels the product should cost

$$ Typical price

$$ Last price paid

$$ Upper$-$bound price $-$ reservation price or the maximum most consumers would pay

$$ Lower$-$bound price $-$ lower threshold price or the minimum most consumers would

pay

$$ Historical competitor price

$$ Expected future price

$$ Usual discounted price

$2)$ Briefly describe the different types of pricing objectives.

Answer: answers should be aligned with the following points and facts provided.

When a company is preparing to sets its price, first of all it has to select its pricing

objectives. The five major objectives available to a company are: survival, maximum

current profit, maximum market share, maximum market skimming, and productquality leadership.

$3)$ What are the different price$-$setting methods? Briefly describe each of them.

Answer: answers should be aligned with the following points and facts provided.

The six major price$-$setting methods are: markup pricing, target$-$return pricing,

perceived$-$value pricing, value pricing, going$-$rate pricing, and auction$-$type pricing.