A price-setting mechanism is a method through which the market decides on a commodity's price (or the relationship between the prices of several commodities).
What is prestige pricing quizlet?
Prestige pricing is the practice of charging a high price for a product in an effort to attract quality- or status-conscious customers.
A pricing strategy in which prices are set high, with the understanding that lower costs will hinder rather than stimulate sales and that consumers will link a high price for the product with greater quality; also known as image pricing.
Businesses employ the marketing tactic of prestige pricing to raise their profit margin and improve the perception of their brand.
It's a psychological pricing approach that seeks to make things appear more expensive than they actually are to customers.
