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
Multiple choice question.
cost-plus
luxury
skimming
prestige
Answers
GPT-4o mini
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.
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.