Max and Tiffany are celebrating their 10th wedding anniversary and are dining at an exclusive French restaurant in a major city a few hours away from their home. They're reviewing the wine list and want to celebrate their anniversary with a bottle of champagne. Max and Tiffany are not very knowledgeable about the different brands of champagne but know that in order to be classified as champagne, the grapes must be grown in a particular region of France known as the champagne viticulture region. Other producers might have similar products, but they must use the phrase "sparkling wine" as they are prohibited from using the champagne name. As Max and Tiffany are reviewing the wine list, they see that a bottle of Cristal, which is a famous label, sells for $250 per bottle but a sparkling wine from the Anjou region of France is $50 per bottle. Since Max and Tiffany are not that knowledgeable about wine, they decide to order the $50 bottle of sparkling wine. What type of pricing strategy does Cristal most likely utilize?

Question

Quizplus · Accepted Answer

Cristal most likely uses a prestige pricing strategy, which involves setting high prices to signal status and exclusivity to the target market. The $250 price tag serves as a status symbol for consumers who are willing to pay more for luxury products.

Max and Tiffany Are Celebrating Their 10th Wedding Anniversary and Are