The reference price is calculated as the price paid
by the individual the last time that he/she bought the
same brand that he/she will acquire at the moment of
the purchase.
• The reference price is the price paid the last time
the person bought the same category of products,
independently of the brand that was acquired.
• The reference price is calculated as an exponentially
smoothed composite of the prices of a brand faced
by a consumer during his entire purchase history. In
this research, a coeffi cient of 0.2 is used