The company most likely replaced prestige pricing with their discounting strategy. Prestige pricing involves setting a high price to maintain an image of luxury and quality, and a reduction in price would undermine that perception, which aligns with the observed decline in sales.
When the producers of one of the world’s most accurate watches reduced prices on their most luxurious watch by 30 percent, they also experienced a 30 percent decline in sales as a direct result. Which pricing policy did the company MOST likely replace when they discounted the pricing?
(1 point)
Responses
price skimming
price skimming
penetration pricing
penetration pricing
prestige pricing
prestige pricing
odd-even pricing
1 answer