Explore BrainMass
Share

Price setting in the Business World

This content was STOLEN from BrainMass.com - View the original, and get the already-completed solution here!

Define prestige pricing and describe when it would be an appropriate strategy.

Could a retailer charge a prestige price for a convenience product?

Does a decision to use prestige pricing affect how a product is distributed?

© BrainMass Inc. brainmass.com October 17, 2018, 12:14 am ad1c9bdddf
https://brainmass.com/business/the-marketing-mix/price-setting-in-the-business-world-286438

Solution Preview

Let's take a closer look at these interesting questions. I also provided links for further reading.

1. Define prestige pricing and describe when it would be an appropriate strategy.

Prestige pricing "a pricing method whereby prices are set at an artificially high level to provide prestige or a quality image" (see full article at http://www.knowthis.com/principles-of-marketing-tutorials/setting-price-part-1/market-pricing-psychological-method/).

It is considered a psychological strategy as it has a psyhcological effect on the customer's and affect her or his buying behavior. Prestige pricing points to a strong correlation between perceived product quality and price.
( see full article at http://www.knowthis.com/principles-of-marketing-tutorials/setting-price-part-1/market-pricing-psychological-method/).

It is appropriate for many instances. For example, the less a customer knows about a product the more likely they are to judge the product as being of higher quality based on ...

Solution Summary

By addressing the questions, this solution discusses aspects of price setting in the business world. References are provided.

$2.19
Similar Posting

Multicultural Teams

Leadership for Multicultural Teams

Examine the characteristics that are linked to successful leadership in the context of global and multicultural teams. In a two-page paper, cite and explain the core characteristics and skills essential to leading global teams. What makes a good leader in that environment? What makes a good team in that environment? Explain with rationales and examples.

View Full Posting Details