Taylor recently went shopping for the first time at Farm to Home, a whole foods grocery store that emphasizes natural, hormone-free products. Taylor usually shops at Walmart and pays $.88 for a gallon of milk. At Farm to Home, a gallon of milk was $9.00. It seems that Farm to Home is using a:
A) prestige pricing approach.
B) sales volume approach.
C) pricing parity approach.
D) market share maximization approach.

Question

Quizplus · Accepted Answer

Prestige pricing approach is used by Farm to Home, as they set higher prices to signal higher quality or exclusivity, which is evident from the significant price difference compared to Walmart's milk price.

Taylor Recently Went Shopping for the First Time at Farm