NV Inc has launched a touch sensitive handset in the Indian market and priced the same at INR 9500

Although many people are checking it out and showing interest about purchasing it, the majority of them are holding themselves back because they feel that it is not worth INR 9500. They compare the handset's feature with that of its other competitors offering the same features and come to a conclusion that it is worth INR 8500 and nothing more than that. What kind of a reference price are the consumers using?

The consumers are using the upper-bound price. Upper-bound price refers to the reservation price or the maximum that most consumers would pay.