Which of the following BEST describes prestige pricing?
A) It is also called leader pricing.
B) It emphasizes the monetary nature of price.
C) It is the practice of marking up prices by 100 percent.
D) It uses high prices to promote a high-quality product.

Question

Quizplus · Accepted Answer

Prestige pricing is a strategy where high prices are used to convey the quality and exclusivity of a product. The high price tag is often associated with luxury, status, and high quality. Therefore, option D is the best description of prestige pricing. The other options are incorrect as leader pricing refers to a pricing strategy where the price is set lower than competitors, emphasizing the lowest price in the market. Option B is incorrect as it does not capture the essence of prestige pricing. Option C is also incorrect as marking up prices by 100 percent would not necessarily reflect prestige pricing.

Which of the Following BEST Describes Prestige Pricing