What is the term for selling Rolex watches for $6,000-$10,000 when a perfectly satisfactory watch can be purchased for 5 percent of that amount?
A) snob pricing strategy
B) over-value pricing strategy
C) prestige pricing strategy
D) price lining strategy

Question

Quizplus · Accepted Answer

The term for selling luxury goods, such as Rolex watches, for a much higher price than their actual value is called prestige pricing strategy. This is because the high price is meant to convey a sense of exclusivity and prestige to the buyer, who may be willing to pay more for the status symbol. The other options (snob pricing, over-value pricing, and price lining) don't quite capture the specific rationale behind pricing luxury goods.

What Is the Term for Selling Rolex Watches for $6,000-$10,000