Prestige pricing sets prices artificially high to foster the impression of a high-quality product.

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Prestige pricing is a common pricing strategy where prices are set higher than the actual production costs to create the perception of a high-quality product. It is often used by luxury brands and high-end products to create an exclusive image and appeal to consumers who are willing to pay more for perceived prestige.

Prestige Pricing Sets Prices Artificially High to Foster the Impression