Question

Sal is currently in the market for a new car. He considers various factors before making his purchase; for example, he considers gas mileage, power-train warranty, safety records, status, price, and convenience. He then makes a final list of six possible vehicles to purchase. However, after thinking about all these things, he dismisses them and decides instead to purchase the highest price vehicle. Based on this information, what is the most likely reason for Sal's decision?

Answer 1

He assumed that the highest price car must also be the most prestigious and he would like to project a high-status image

Step-by-step explanation:

Prestige pricing is a pricing strategy in which the prices of goods or services are set at a higher level in order to give off the appearance of a high quality product. This strategy works because customers will pay higher prices for the right image and will not investigate whether the price actually reflects the value of the good or service.

From the scenario presented above, Sal has based his purchase decision on the fact that a high price for a commodity will automatically translate to a high value, and that the product will be the most prestigious because it is expensive.