A pricing strategy that sets the price at a premium under the assumption that people will pay more for the product because of the product's brand name,media attention,or some other reason that has piqued the interest of the public is known as:
A) cost-plus pricing.
B) contribution margin-based pricing.
C) target pricing.
D) prestige pricing.

Question

Quizplus · Accepted Answer

This pricing strategy is called "prestige pricing," which banks on the assumption that consumers will pay more for a product that has gained popularity due to its brand name, media attention, or unique features.

A Pricing Strategy That Sets the Price at a Premium