Which of the following pricing objectives will have the most influence on Phin's, a luxury watchmaker's, pricing strategy?
A) Profitability
B) Prestige
C) Meeting the competition
D) Volume

Question

Quizplus · Accepted Answer

Phin, being a luxury watchmaker, is likely focused on maintaining or increasing its prestige within the market. While profitability and meeting the competition may also be considerations, for luxury brands, maintaining an image of exclusivity and prestige can be the most influential factor in pricing decisions. Volume may be less of a concern for a luxury brand, as demand for high-end products tends to be more limited.

Which of the Following Pricing Objectives Will Have the Most