Which of the following is a product pricing strategy of raising the price of a product so consumers will perceive it as being of higher quality, status, or value?
A) prestige
B) leader
C) penetration
D) skimming

Question

Quizplus · Accepted Answer

Prestige pricing involves raising the price of a product in order to create the perception that it is of higher quality, status, or value. This can be effective for luxury or high-end products where consumers are willing to pay more for the perceived prestige associated with the product. Leader pricing involves offering a product at a low price, often at cost or below cost, in order to attract customers and increase market share. Penetration pricing involves setting a low initial price for a new product in order to encourage customers to try it and gain market share, with the intention of raising the price later. Skimming involves setting a high price for a new product with the intention of gradually lowering the price over time as competitors enter the market.

Which of the Following Is a Product Pricing Strategy of Raising