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

Question

Quizplus · Accepted Answer

This is an example of prestige pricing strategy, in which higher prices are charged to signal status and exclusivity to consumers who are willing to pay a premium for luxury and prestige brands, such as Rolex. The price is not solely based on the product's functional value, but on its perceived higher quality or status. This strategy is commonly used in luxury fashion, jewelry, and automotive industries.

Selling Rolex Watches for $6,000 to $10,000 When a Perfectly