Prestige Pricing

Prestige Pricing
Another psychological effect, called prestige pricing, points to a strong correlation between perceived product quality and price.

Prestige Pricing Assumes consumers will not buy goods and services at prices deemed too low. It is based on the price-quality association.

prestige pricing
a pricing strategy in which prices are set at a high level, recognising that lower prices will inhibit sales rather than encourage them and that buyers will associate a high price for the product with superior quality, ...

Prestige pricing
Prestige pricing refers to the practice of setting a high price for an product, throughout its entire life cycle - as opposed to the short term ‘opportunistic’, high price of price ‘skimming’.

Customary pricing is a pricing tier that falls between discount pricing and prestige pricing. The pricing tier that a retailer chooses will, to some extent, determine the type of customers it attracts.

See also: Customer, Product, Free, Research, Market