Chris and Lynn were watching sales slumping for their line of expensive, exotically-scented candles, and they had narrowed down their options to adjusting the price. Chris suggested the best thing to do would be to raise prices. Lynn thought Chris wasn't thinking clearly, but increasing prices to stimulate sales for luxury items is known as
A) reverse pricing logic.
B) prestige pricing.
C) enhanced value-based pricing.
D) dynamic pricing.

Question

Quizplus · Accepted Answer

Prestige pricing is a strategy where prices are set higher to give the appearance of a high-value, luxury item, which can actually increase demand among consumers seeking premium products.

Chris and Lynn Were Watching Sales Slumping for Their Line