Question

After researching products similar to yours in the industry, you decide that your product has superior value. As such, you decide to price your product above the other products in the same industry. Which type of pricing strategy are you most likely using?

Answer 1

Answer: premium pricing strategy

Explanation: its also known as premium pricing and luxury pricing a prestige pricing strategy is a situation whereby a firm price their products high to present the brand that their products is of high-value, luxury, or premium. Premium pricing strategy focuses on the perceived value of a product rather than the actual value or production cost.

Prestige pricing is a direct function of image awareness and brand perception. Films who use this pricing method are known for providing value and status through their products, and one of the reasons why they’re priced higher than other competitors in the market, firm that often use this strategy are fashion and technology because they can be marketed as luxurious, exclusive, and rare.