Many consumers are willing to pay $100 for a perfume that contains $10 worth of scent because the perfume is from a well-known brand. What kind of pricing is the company depending on?
A) going-rate pricing
B) image pricing
C) market-skimming pricing
D) target pricing
E) markup pricing

Question

Quizplus · Accepted Answer

The company is depending on image pricing, where they are pricing the product higher due to the perceived value and prestige associated with the brand, rather than the actual production cost of the product.

Many Consumers Are Willing to Pay $100 for a Perfume