Prestige pricing entails giving most of the value to the customer and retaining a small margin.

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Prestige pricing is a strategy where higher prices are charged for a product or service to give the perception of exclusivity and high-quality. This pricing strategy aims to make customers believe that by paying a premium price, they are getting superior value. The focus of prestige pricing is on maximizing profits rather than offering value to the customer. Therefore, it entails retaining a large margin and giving limited value to the customer.

Prestige Pricing Entails Giving Most of the Value to the Customer