A company that charges a high price to invoke perceptions of high quality is using ________ pricing.
A)psychological
B)prestige
C)dynamic
D)reference

Question

Quizplus · Accepted Answer

Prestige pricing involves charging a higher price to create a perception of high quality and exclusivity. Customers are willing to pay more for products that they perceive as "prestigious" or "luxury," and this pricing strategy is often used by high-end brands and luxury goods companies. Psychological pricing involves pricing items at a level that seems to be more appealing to the customer's psychology, such as $9.99 instead of $10 to give the impression of a better deal. Dynamic pricing is adjusting prices in real-time based on current market demands and conditions. Reference pricing is where a product is priced comparatively with similar products in the same category.

A Company That Charges a High Price to Invoke Perceptions