Chico's sells women's sportswear. A simple tank top with the Chico's label costs $48. If you know you simply want a tank top, you can buy a tank top for $5 at a Family Dollar Store, but it won't have the Chico's label. What kind of demand-oriented approach to pricing is being used by this manufacturer?

Question

Quizplus · Accepted Answer

Chico's is using prestige pricing, which prices products higher to give them an exclusive or high-end image that appeals to certain customers who value prestige or status. By attaching their label to a simple tank top, Chico's is aiming to position themselves as a premium brand.

Chico's Sells Women's Sportswear