Talbot's sells women's clothes.A longsleeve scoopneck t-shirt with the Talbot's label costs $45.By comparison,you can buy a t-shirt for $5 at a Family Dollar Store,but it won't have the prestigious Talbot's label or quality.What kind of demand-oriented approach to pricing does Talbot's use?

Question

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Talbot's uses prestige pricing, which is based on the idea that consumers will pay more for a product that is associated with a higher level of prestige or status. The Talbot's label is associated with higher quality clothing and a certain level of sophistication, which allows them to charge a premium price for their products.

Talbot's Sells Women's Clothes