Explain the price adjustment strategy evident in supermarket

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Reference no: EM132001789

A supermarket places its store brand of blackberry jam priced at $5 per jar in the fruit preserves aisle, alongside the jam jars of a better known brand-whose products are priced at $8 apiece.

Store managers reason that customers are more likely to choose the store brand instead of the better-known brand when they realize the price difference.

Explain the price adjustment strategy evident in the supermarket's reasoning?

Reference no: EM132001789

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