Jennifer is looking for a wedding present for her fiance and is considering buying him a watch.She likes luxury items and is willing to spend between $4,000 and $10,000 on the gift.She visits several jewelry stores and realizes that the prices are the same for Rolex and Philippe Patek brand watches and each store tells her these brands are never discounted.What type of pricing objective is utilized by Rolex and Philippe Patek?

Question

Jennifer is looking for a wedding present for her fiance and is considering buying him a watch.She likes luxury items and is willing to spend between $4,000 and $10,000 on the gift.She visits several jewelry stores and realizes that the prices are the same for Rolex and Philippe Patek brand watches and each store tells her these brands are never discounted.What type of pricing objective is utilized by Rolex and Philippe Patek?​

Quizplus · Accepted Answer

Rolex and Philippe Patek are utilizing a prestige pricing objective, where they maintain high prices to reflect exclusivity and luxury associated with their brand. This pricing strategy also helps in maintaining their premium image and avoiding any price wars with competitors.

Jennifer Is Looking for a Wedding Present for Her Fiance