A retailer of lawnmowers is considering changing the prices of some of his products. A pricing consultant advises him to consider the IRPs of the consumers in his market.
(a) Formulate a survey question that the retailer could use to measure consumers’ IRPs.
(b) Assume that the retailer is currently selling a particular lawnmower for $269. If the retailer’s research determines that the IRP of most consumers for this lawnmower is the range from $250 to $299, what are the implications of knowing this for possible price changes on this product?