Luxury car companies are notorious for jacking up prices on high end vehicles. There are many examples of companies and brands that use a prestige pricing strategy to leverage their products. Which brands make use of a prestige pricing strategy? A prestige pricing strategy has the ability to give companies a psychological marketing advantage by convincing customers there is added value for the cost, and it takes advantage of the buyer’s assumption that one brand’s product is of a higher quality than the competitors because it costs more.
The theory is that customers will pay higher prices for the right image and won’t investigate whether the price accurately reflects the value.
