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Explanation of Prestige Pricing

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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?

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This solution provides an explanation of prestige pricing.

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Prestige pricing is the act of pricing a product at a high price to convey the idea of high quality or status. Prestige pricing is used when a product is new or in limited editions. It is also used to gain interest or to attract buyers that are looking for products with ...

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