The Fairmont Hotel is widely known for its exceptional quality and impeccable customer service. Not surprisingly. the Fairmont sets prices at the top end of all competing hotels. Which pricing strategy is the Fairmont using?
A) exclusive pricing
B) image pricing
C) psychological pricing
D) prestige pricing
E) service-based pricing

Question

Quizplus · Accepted Answer

The pricing strategy used by the Fairmont Hotel is prestige pricing. This strategy involves setting high prices to create the perception of superior quality and status in the market. The Fairmont Hotel is known for its exceptional quality and service, and the high prices charged by the hotel contribute to this perception.

The Fairmont Hotel Is Widely Known for Its Exceptional Quality