Marketers who use Blank______ to signal the quality of an item, must be careful not to drop the price of the product below the point where customers become skeptical of its quality and refuse to purchase it.

Question

Marketers who use Blank______ to signal the quality of an item, must be careful not to drop the price of the product below the point where customers become skeptical of its quality and refuse to purchase it.
Multiple choice question.

odd-even pricing

price lining

bundle pricing

prestige pricing

GPT-4o mini · Answer

The correct answer is **prestige pricing**. Prestige pricing is used to signal the quality of an item, and lowering the price too much can lead customers to question its quality.