The purpose of the study is to understand the area of reference price based on previous literature and to assess the current state of knowledge relating to pre-purchase price quality perception and how price features contribute to selection of a particular model in a product line with special emphasis on the automobile sector. Acceptable price range or the reference price is the price that the buyer has in his/her mind, which will be used as a yardstick for making a purchase. A 2 x 4 factorial design with three dependent variables was used in an experimental setup to test the hypotheses formulated based upon behavioral research. The results indicate that while the price characteristics of a product line influence consumer evaluations of a product model within the line, the price characteristics do not operate independently; rather, they interact. Further, the study suggests that several dependent variables that are usually considered separately in price research are actually dimensions of similar constructs. Examining the issue of product-line pricing from a behavioral perspective, this experiment suggests that understanding price perception is the key for developing an effective marketing strategy. [