John Diaz immigrated to Toronto from Cuba in the 1980s.He set up a coffee shop called Diaz in a small upper-middle-class neighbourhood.It rapidly became popular because of the wonderful coffee brewed there.Soon Diaz was selling the finest coffees from around the world,plus coffee-making necessities such as grinders and brewers.Within 10 years,Diaz was operating a lucrative mail-order business in addition to his coffee shop.
-Refer to Diaz.What pricing strategy would you expect to find being used at Diaz?

Question

Quizplus · Accepted Answer

Diaz's coffee shop is described as being in a small upper-middle-class neighbourhood and selling the finest coffees from around the world. This suggests that Diaz is using prestige pricing, which involves setting high prices to create the perception of quality and exclusivity.

John Diaz Immigrated to Toronto from Cuba in the 1980s