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

Question

Quizplus · Accepted Answer

Prestige pricing, also known as premium pricing, is the strategy of charging a high price to create the perception of high quality or exclusivity. This strategy is often used by luxury brands to differentiate themselves from their competitors and to appeal to consumers who value status and prestige. By charging a higher price, brands can also increase their profit margins and appear more lucrative and successful to investors.

A Company That Charges a High Price to Invoke Perceptions