prestige pricing

  

Definition

Marketing strategy where prices are set higher than normal because lower prices will hurt instead of helping sales, such as for high-end perfumes, jewelry, clothing, cars, etc. Also called image pricing.

Use prestige pricing in a sentence

  • Tracy knew that the cost of the headphones was much to much due to prestige pricing, but she did not mind exchanging a little extra cash for the image boost the headphones gave her.

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  • I usually don't believe in prestige pricing, because if the guy across the street can sell the same thing we're selling for less the customers are obviously going to go to him.

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  • Nike is a company that uses prestige pricing effectively, where prices are set higher than normal because lower prices will actually hurt sales.

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