Figure 14-3

-The movement from point B to point C in Figure 14-3 above shows
A)skimming demand.
B)penetration demand.
C)that buyers see the product as a bargain and buy more.
D)that buyers become dubious about the quality and prestige and buy less.
E)a downturn in the economy.

Question

Figure 14-3
 
-The movement from point B to point C in Figure 14-3 above shows
A)skimming demand. 
B)penetration demand. 
C)that buyers see the product as a bargain and buy more. 
D)that buyers become dubious about the quality and prestige and buy less. 
E)a downturn in the economy.

Quizplus · Accepted Answer

Prestige pricing involves setting a high price so that quality- or status-conscious consumers will be attracted to the product and buy it.From points A to B,buyers see the lowering of price as a bargain and buy more;from points B to C,they become dubious about the quality and prestige and buy less.A marketing manager's pricing strategy here is to stay above price P₀,the initial price.

Figure 14-3 -The Movement from Point B to Point C in Figure