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. web 12-38 PRESTIGE PRICING APPLICATION Bijan'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: b Page: 261 Rationale: Prestige pricing involves setting a high price so the quality- or status-conscious consumers will be attracted to the product and buy it. 12-39 PRESTIGE PRICING APPLICATION You 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: c Page: 261 16