One rationale for establishing a price skimming objective is that ________ lends status to a product or brand by virtue of a price relatively higher than the competition.
A) product line pricing
B) captive pricing
C) price bundling
D) reference pricing
E) prestige pricing

Question

Quizplus · Accepted Answer

Prestige pricing is the strategy of setting a high price to create a perception of high quality and exclusivity. This is often used with luxury products, where a higher price is associated with higher status or prestige. By setting a high price, consumers may perceive the product or brand to be of higher quality and status than competitors' products.

One Rationale for Establishing a Price Skimming Objective Is That