When Swiss watchmaker TAG Heuer increased the average price of its watches from $250 to $1,000, its sales volume jumped sevenfold. This is evidence that Blank______ pricing is important in this product category.

Question

When Swiss watchmaker TAG Heuer increased the average price of its watches from $250 to $1,000, its sales volume jumped sevenfold. This is evidence that Blank______ pricing is important in this product category.
Multiple choice question.

cost-plus

luxury

skimming

prestige

GPT-4o mini · Answer

The correct answer is **prestige**. Prestige pricing involves setting higher prices to signal quality and exclusivity to consumers, which seems to be the case with TAG Heuer's price increase leading to a significant jump in sales volume.