Figure 14-3

-Figure 14-3 above shows a demand curve depicting which pricing approach?

Question

Figure 14-3
 
-Figure 14-3 above shows a demand curve depicting which pricing approach?

Quizplus · Accepted Answer

Prestige pricing involves setting a high price so that quality- or status-conscious consumers will be attracted to the product and buy it.The demand curve shows that demand is actually reduced between points B and C.From points A to B,buyers see the lowering of price as a bargain and buy more;from points B to C,they become dubious about the quality and prestige and buy less.A marketing manager's pricing strategy here is to stay above price P₀,the initial price.

Figure 14-3 -Figure 14-3 Above Shows a Demand Curve Depicting Which Pricing