Analysis has shown that ingredients account for less than 5 percent of a perfume's cost. So if a perfume costs $135 or more per ounce, it reflects the marketer's adoption of a pricing objective that focuses on:
A) expanding market share.
B) creating image or prestige.
C) meeting competitors' prices.
D) maximizing sales.

Question

Quizplus · Accepted Answer

The high cost of perfume, despite the low cost of ingredients, suggests that the pricing strategy is aimed at creating an image or prestige for the product rather than focusing on market share, competition, or sales maximization. This is because the significant markup is likely intended to position the perfume as a luxury or high-end product.

Analysis Has Shown That Ingredients Account for Less Than 5