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:

Monetary Unit Assumption

An accounting assumption that requires that financial reports be expressed in a single monetary unit, or currency.

Economic Data

Statistical information reflecting the condition of an economy, such as GDP, employment rates, and inflation, used for analysis and policy-making.

Total Assets

The sum of everything of value owned by a business, including cash, securities, equipment, and real estate.

Liabilities

Liabilities are financial obligations or debts owed by a business or an individual to others, which must be settled over time through the transfer of economic benefits including money, goods, or services.