Jennifer is looking for a wedding present for her fiancé 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

Quizplus · Accepted Answer

Prestige pricing is utilized by Rolex and Philippe Patek, as they maintain high prices to emphasize the exclusivity and luxury status of their products, which is consistent with Jennifer's observation that these brands are never discounted and have uniform high prices across different stores.

Jennifer Is Looking for a Wedding Present for Her Fiancé