Talbot's sells women's clothes.A simple tee shirt with the Talbot's label costs $25.If you know you simply want a tee shirt, you can buy one for $5 at a Family Dollar Store, but it won't have the Talbot's label or quality.What kind of demand-oriented approach to pricing is being used by this manufacturer?
A)experience curve pricing
B)skimming pricing
C)demand-backward pricing
D)prestige pricing
E)flexible pricing

Question

Quizplus · Accepted Answer

The manufacturer is using prestige pricing, where they are charging a higher price for their product based on the perceived quality and reputation of the Talbot's brand. Customers are willing to pay more for the same product because it has the Talbot's label and reputation for quality.

Talbot's Sells Women's Clothes