Asked by Justin Diamond on Jul 14, 2024
Verified
Isabella knows that her customers always shop for top-of-the-line leather purses and price is not a consideration. She decides to price her line of purses and wallets above those of her closest competition in order to capture those customers who only look for the best. What type of strategy is Isabella using?
A) a top of market strategy
B) the value of quality
C) advantageous pricing
D) premium pricing
E) differential pricing
Premium Pricing
A strategy of setting prices higher than competitors to reflect a product's perceived value and quality, targeting consumers willing to pay more.
Leather Purses
Handbags made from the hide of animals, treated and fashioned into various styles and sizes.
Closest Competition
Refers to the competitors within the same industry that offer the most similar products or services to a company's offerings.
- Familiarize oneself with the strategic deployment of pricing for the purposes of market entry, positioning within the market, and attaining an advantage over competitors.
Verified Answer
Learning Objectives
- Familiarize oneself with the strategic deployment of pricing for the purposes of market entry, positioning within the market, and attaining an advantage over competitors.
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