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Chico's sells women's sportswear. A simple tank top with the Chico's label costs $48. If you know you simply want a tank top, you can buy a tank top for $5 at a Family Dollar Store, but it won't have the Chico's label. What kind of demand-oriented approach to pricing is being used by this manufacturer? a.experience curve pricing b.target market share pricing c.demand-backward pricing d.prestige pricing e.flexible pricing Answer: dPage: 261Other Location: Rationale: Prestige pricing involves setting a high price so that quality- or status-conscious consumers will be attracted to the product and buy it. Chico's is obviously hoping to attract that market.Rationale: Prestige pricing involves setting a high price so that quality- or status-conscious consumers will be attracted to the product and buy it. This would be the situation with the Bosch dishwasher since it is trying to convey a status image.web12-38PRESTIGE PRICINGAPPLICATIONBijan's in New York City has offered a five-piece set of crocodile luggage for $55,000. This is an example of __________ pricing. a.penetration b.prestige c.odd-even d.experience curve e.loss-leader Answer: bPage: 261Rationale: Prestige pricing involves setting a high price so the quality- or status-conscious consumers will be attracted to the product and buy it.12-39PRESTIGE PRICINGAPPLICATIONYou can buy a General Electric dishwasher for $399, or you can buy a similar sized under-the-counter Bosch brand dishwasher for $989. Since Bosch uses its pricing strategy to project a product image, it is most likely using __________ pricing. a.bait and switch b.standard markup c.prestige d.penetration e.cost plus fixed-fee Answer: cPage: 26116
12-40PRESTIGE PRICINGCONCEPTUALThe demand curve for which type of pricing method slopes downward and to the right, then turns back to the left?