Hallmark was an official supplier at the Winter Olympics. Hallmark presented each Olympic winner with a special bouquet of roses designed to resemble the Olympic torch. Consumers could buy a smaller version of this bouquet at the Hallmark website for $74.95. The Olympic bouquet contained two dozen yellow roses, yet one could buy two dozen yellow roses for less than $35 at most supermarkets. With the Olympic bouquet Hallmark appealed to flower buyers that wanted to make a statement, so it used which demand-oriented pricing approach?

Question

Quizplus · Accepted Answer

Hallmark used skimming pricing approach where they set a high price for their Olympic bouquet to target the customers who were willing to pay a premium price for a unique and special product. This approach allowed Hallmark to earn higher profits during the Olympics when the demand was highest.

Hallmark Was an Official Supplier at the Winter Olympics