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Previous research has shown that advertisements containing reference prices in addition to offering prices (eg" Regularly $29.95, now only $24.95) resulted in consumers increasing their price benchmarks (ie internal reference prices), and altering their attitudes toward the offer. Moreover, consumers also have internal reference quality and marketers often provide consumers with external reference quality claims (eg" Other brands last two hours, ours lasts six hours"). The effects of external price and quality reference advertisement claims on consumers' internal reference points and attitudes are examined. It is shown that consumers' internal reference prices and quality levels were influenced by the reference claims. Reference price advertisements also impacted subjects' perceived value of the offer. Finds significant effects of reference quality on attitude toward the offer.