Select the correct answer. Which pricing strategy do companies often use for luxury products? A. price skimming B. premium pricing C. penetration pricing D. economy pricing

Question

Business

Giovanni Pearson

29 September, 10:33

Select the correct answer. Which pricing strategy do companies often use for luxury products? A. price skimming B. premium pricing C. penetration pricing D. economy pricing

+4

Answers (1)

Know the Answer?

Kierra Smith · Answer 1

The pricing strategy that companies mostly use for luxury products is "Premium pricing".

Explanation:

Premium pricing is a type of pricing strategy by which a high rate is fixed for a high quality product produced by that company. Premium pricing is also known as Prestige pricing. Rate and cost of most of the luxury and high quality product produced by a company will always tend to be higher in order to make sure that the company doesn't face any loss, On the other hand premium pricing is the key strategy for producing higher profit for a company. On the other it increases the brand value of that company and make them look significant based on their quality of product produced.