When Investigating Prestige Pricing, One Must Bear in Mind That

question 14

Multiple Choice

When investigating prestige pricing, one must bear in mind that:

• A) consumers will only pay the additional premium if they receive high quality
• B) it is most successful for mature products or services
• C) the ability to charge premium prices is often short-lived
• D) the industry must be free of any competitors employing the same strategy

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Definitions:

Cost-Of-Living Increases

Adjustments to salaries or wages to offset the impact of inflation on purchasing power.

Job Evaluation

A systematic process used to assess the relative worth of jobs within an organization for the purpose of establishing fair compensation levels.

Private Sector

Part of the economy that is run by individuals and companies for profit and is not directly controlled by the state.