Selling Rolex watches for $6,000-$10,000 when a perfectly satisfactory watch can be purchased for 5 percent of that amount is an example of which of the following?

Question

Quizplus · Accepted Answer

The scenario described is an example of prestige pricing strategy, which involves setting high prices to create a perception of luxury and exclusivity among customers who are willing to pay more for a brand's prestige. The high price range for Rolex watches targets affluent consumers who value the status associated with owning a prestigious luxury watch. The other options (snob pricing, over-value pricing, price lining) do not adequately capture the strategic intent behind the scenario described.

Selling Rolex Watches for $6,000-$10,000 When a Perfectly Satisfactory Watch