Talbot's sells women's clothes. A longsleeve scoopneck t-shirt with the Talbot's label costs $45. By comparison, you can buy a t-shirt for $5 at a Family Dollar Store, but it won't have the prestigious Talbot's label or quality. What kind of demand-oriented approach to pricing does Talbot's use?

Question

Kareem

Business

4 October, 08:06

Talbot's sells women's clothes. A longsleeve scoopneck t-shirt with the Talbot's label costs $45. By comparison, you can buy a t-shirt for $5 at a Family Dollar Store, but it won't have the prestigious Talbot's label or quality. What kind of demand-oriented approach to pricing does Talbot's use?

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Isabelle · Answer 1

Answer: Prestige Pricing

Explanation: Prestige pricing also known as premium pricing is a type of demand-oriented approach to pricing where the quality of an item is determined by its price.

Under this approach, companies price their products very high in the market making consumers believe that the products are high quality products.

Products or item under this category are given special type of label or a unique logo is name which makes it look more superior that any other one being sold in the same market.