Chico's sells women's sportswear.A simple tank top with the Chico's label costs $48.If you know you simply want a tank top,you can buy a tank top for $5 at a Family Dollar Store,but it won't have the Chico's label.What kind of demand-oriented approach to pricing is being used by this manufacturer?

Question

Quizplus · Accepted Answer

The manufacturer is using prestige pricing, where they are setting a higher price for their product due to the brand name and perceived quality associated with it. This approach is often used in the fashion industry where customers are willing to pay more for a product that is associated with a prestigious brand name.

Chico's Sells Women's Sportswear