Suppose Tommy Hilfiger is introducing a new line of men's ties. The designer believes that the target market for these ties comprises men who are very status-conscious. In keeping with this assessment, department stores selling the ties should
A) charge a price based on their cost.
B) charge prices consistent with their existing ties.
C) discount the ties.
D) negotiate the price with individual tie shoppers.
E) use price symbolically.

Question

Quizplus · Accepted Answer

Using price symbolically would be the best choice in this scenario as the target market is status-conscious. Higher price points can signal luxury and exclusivity, which may appeal to this group of consumers. Discounting the ties or negotiating the price may actually turn off this target market and diminish the perceived value of the product. Charging a price based on cost or consistent with existing ties may not capture the premium image that Tommy Hilfiger is trying to convey with this new line.

Suppose Tommy Hilfiger Is Introducing a New Line of Men's