Prada and Gucci products most likely use which pricing strategy?
A)Skimming pricing.
B)Penetration pricing.
C)Price lining.
D)Prestige pricing.

Question

Quizplus · Accepted Answer

Prada and Gucci are both luxury brands that focus on prestige pricing. This pricing strategy involves setting high prices to convey a sense of exclusivity and luxury to customers, rather than competing on price alone. Customers who are willing to pay a premium for a luxury brand are attracted to the quality, craftsmanship, and prestige associated with the product, which justifies the high price.  Skimming pricing involves setting high prices for a new product to recoup development costs before dropping the price later on. Penetration pricing involves setting low prices initially to gain market share, while price lining involves offering different price points for different product tiers within the same brand. None of these strategies accurately reflect the pricing strategy typically used by luxury brands like Prada and Gucci.

Prada and Gucci Products Most Likely Use Which Pricing Strategy