The salesman told Todd that the high price of the dealerships' automobiles was indicative of their high quality. The dealership is using a ____ pricing strategy.
A) skimming
B) penetration
C) variable
D) prestige

Question

Quizplus · Accepted Answer

The dealership is using a prestige pricing strategy, which involves setting high prices to convey a sense of high quality or exclusivity to the customer. This is done to create a perception of luxury and prestige in the buyer's mind, which, in turn, can lead to greater demand and increased sales.

The Salesman Told Todd That the High Price of the Dealerships