Some consumers maintain a "price-quality association," meaning that if a product has a high price, they assume the product must have high quality. This "price-quality association" is the basis for the use of:
A) Odd-even pricing.
B) Prestige pricing.
C) Leader pricing.
D) Reference pricing.
E) Price lining.

Question

Quizplus · Accepted Answer

Prestige pricing is the use of a higher price to signal higher quality and exclusivity to consumers who believe in the "price-quality association."

Some Consumers Maintain a "Price-Quality Association," Meaning That If a Product