Question

The Subtle Scents Perfume Company has recently introduced a new perfume. It is priced quite high as the company wants to position the perfume as one of high quality. Even though it is expensive, the perfume is in high demand by consumers who are loyal to this brand. In this case, which pricing strategy is Subtle Scents using? Multiple Choice skimming pricing symbolic/prestige pricing penetration pricing even/odd pricing reference pricing Manville Motors has developed a new car model with the best fuel efficiency on the market, innovative navigation technology that takes traffic and road conditions into account, extensive safety features, and luxurious style to attract more customers. Since this car offers so many features that customers are willing to pay for, Manville Motors decides to charge the highest possible price that buyers who want the product will pay. The pricing strategy used in this scenario is Multiple Choice penetration pricing. price skimming. psychological pricing. profit standardization. reference pricing.

Answer 1

1. By using brand loyalty as a tool, the company is using symbolic / prestige pricing strategy where the customers associate higher prices with superior product uality.

Option 2 s right

2. By offering an iniytial higher price to attract the customers who are willing to pay premium for additional benefits, the company is uing price skimming strategy.

Option 2 is right.

3. Wholesalers and retailers are intermediary organisations which work for a margin and act as a link between the manufacturer and the customers.

Option 1 is right.