Marketing 2014 17th Edition by William Pride,Ferrell

Exercise 5

Diamond marketers sometimes employ prestige pricing. This is especially true at high-end jewelers like Tiffany's, whose signature blue box conveys exclusivity and status. A pair of their diamond earrings, for example, may be priced considerably higher than "generic" diamond earrings. Identify three prestige brands in different product categories. Compare each prestige-priced brand to regularly priced brands in each product category, and calculate the price differentials. In each product category, is the price difference justifiable? Explain.