When consumers examine products, they often compare an observed price to an internal price they remember. This is known as a(n) ________ price.

This concept you’re referring to is known as a reference price. A reference price is the price that consumers recall when evaluating the actual price of a product. It serves as a benchmark for consumers to determine whether a particular price is fair, high, or low. This internal price can be influenced by past experiences, marketing, or information from friends. For instance, if a consumer has previously bought a similar product for $15, they may use this figure as their reference price to judge whether a new product priced at$20 is too expensive, reasonable, or a good deal. Understanding reference prices is crucial for marketers, as it can impact pricing strategies and consumer behavior significantly.