Question

When Brooks Brothers prices its line of umbrellas at three price points, $58, $198, and $498 (or good, better, and best), it is using a blank approach:

A) Premium pricing
B) Psychological pricing
C) Price skimming
D) Price discrimination

Answer 1

Brooks Brothers is using premium pricing to position its umbrellas as high-end and premium products.

Step-by-step explanation:

When Brooks Brothers prices its line of umbrellas at three price points, $58, $198, and $498, it is using premium pricing. Premium pricing is a strategy where companies set higher prices to convey a sense of quality or exclusivity to customers. In this case, Brooks Brothers is using higher price points to position its umbrellas as high-end and premium products.