Reference no: EM132246745

Effective pricing strategies have been the focus of much of course. Yet, while some make theoretical sense, consumers feel disadvantaged --- or worse, being "taken for a ride --- at times (such as in the case of Coca-Cola adjustable price vending machines and Uber's policy of "surge pricing"). Explain the concept of a reference price and how it relates to the psychology of the consumer. Further, explain and discuss how firms can more easily integrate efficient economic pricing practices without facing a backlash from consumers.