The price of a haircut is $16 in all of the hair salons in the town of Fairview. All of the salons have equally good stylists, so you know that you will receive a good haircut. But, if you have your hair cut at Foxglove Salon, you will also get a ten-minute shoulder massage with your haircut. The price there is still only $16. Foxglove Salon is using _____ pricing.

Question

Quizplus · Accepted Answer

Foxglove Salon is using value pricing by offering an additional service (a ten-minute shoulder massage) at the same price as other salons, thereby increasing the perceived value of their service without increasing the price.

The Price of a Haircut Is $16 in All of the Hair