Question

Brian is shopping for a new coat at Stein Mart and finds a North Face down jacket that he really likes. He knows that the North Face brand is considered to be high quality and that it's usually very expensive. He's pleasantly surprised to see the price-the "suggested retail price" is $199 and Stein Mart's price is $99. Brian decides to purchase the coat even though it's a little more expensive than he originally thought he'd spend on the jacket. What type of pricing strategy is Stein Mart using to price the North Face jacket and other merchandise?
A) Comparison discounting
B) Price leaders
C) odd-number pricing
D) Special-event pricing

Accepted Answer

Stein Mart is using comparison discounting by showing a higher "suggested retail price" and a lower store price to make the customer perceive a good deal.

Quiz 12: Pricing Concepts and Management