Setting a High Price So That Quality- or Status-Conscious Consumers

question 296

Multiple Choice

Setting a high price so that quality- or status-conscious consumers will be attracted to the product and buy it is referred to as

• A) skimming pricing.
• B) status pricing.
• C) price lining.
• D) value pricing.
• E) prestige pricing.

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Definitions:

Marginal Cost

The expense associated with manufacturing an extra unit of a product or service.

Economic Activity

Actions that involve the production, distribution, and consumption of goods and services at all levels within a society.

Marginal Cost

The expense involved in making an extra unit of a good or service.

Additional Unit

Refers to one more unit of something, often used in the context of production, sales, or inventory.