prestige pricing

Advantages: customers are more likely to buy a high quality product when the price is rounded up because they believe that the product is expensive and good quality.

Disadvantages: If the quality isn't there then customers may not buy it again.

prestige pricing

• the practice of pricing goods at a high level in order to give the appearance of quality.
• when prices are kept higher then normal for for an entire product
• also known as premium pricing, is a pricing strategy where prices are consciously kept higher than normal for the entire product life cycle.
• Normal trend is that marketers try to keep the prices of their product as low as possible

will platts and Pierce Culey