Hilda wants to purchase an expensive denim jacket from Alven's Corner,a premium apparel store.Her friend,Martha,suggests that Hilda buy the same jacket for half the price from a discount store in her neighborhood.Hilda,however,believes that the high cost of the jacket in Alven's Corner is an indication of its premium quality,and so she's willing to pay more.Which of the following psychological pricing strategies has Alven's Corner used to price its product?
A)Odd pricing
B)Prestige pricing
C)Bundle pricing
D)Option pricing

Question

Quizplus · Accepted Answer

Alven's Corner has used prestige pricing, which involves setting a high price to create a perception of high quality and exclusivity. Hilda's willingness to pay more indicates that she associates the high price of the jacket with its premium quality. Odd pricing involves setting prices that end in odd numbers, bundle pricing involves offering a discount when customers purchase multiple items together, and option pricing involves offering different pricing options for the same product or service. None of these strategies are evident in the scenario presented.

Hilda Wants to Purchase an Expensive Denim Jacket from Alven's