Many consumers associate high prices with high quality.In view of this assumption,some of the cosmetics companies use the _____ strategy to price their products.

Question

Quizplus · Accepted Answer

Symbolic/prestige pricing strategy is used by companies to set higher prices for their products, capitalizing on the common consumer perception that higher price equates to higher quality. This approach is particularly effective in markets like cosmetics, where brand image and perceived quality play significant roles in consumer purchasing decisions.

Many Consumers Associate High Prices with High Quality