Your friend Claire has just shared that she dreams of owning a world-famous Hermes Birkin handbag someday. When you inform her that there is a waiting list for these exclusive handbags, which usually sell for $12,000 and up, she says she's waiting for them to go on sale. What do you know about pricing that would influence how you respond?
A) High-end, exclusive brands are always expensive, even when they're on sale, so you would discourage her from spending that much money on a handbag.
B) The high price of this product indicates exceptional quality and prestige, so you would encourage Claire to pay full price for the handbag.
C) Prices usually drop when demand drops, so you should encourage Claire to wait for those conditions.
D) Manufacturers of high-end, exclusive brands usually do not allow discounting to protect the prestige of the brand, so you should tell Claire that she probably won't ever see a sale.

Question

Quizplus · Accepted Answer

Manufacturers of high-end, exclusive brands like Hermes typically maintain the prestige and exclusivity of their products by not allowing them to be sold at discounted prices. This strategy helps preserve the brand's luxury status and demand.

Your Friend Claire Has Just Shared That She Dreams of Owning