What pricing strategy targets buyers seeking high-quality products?

Prestige pricing is a strategy that focuses on setting a high price for a product to emphasize its premium quality and exclusivity. This approach is particularly effective in targeting buyers who are willing to pay more for high-quality products, as it associates the higher price with superior craftsmanship, luxury, and status. By positioning a product in this manner, companies can appeal to consumers who perceive the product's value as being closely tied to its price.

In contrast, strategies like cost-plus pricing involve marking up the cost of production, which does not necessarily convey quality, while discount pricing aims to attract cost-sensitive buyers by lowering prices, thereby diminishing the perception of exclusivity. Dynamic pricing adjusts prices based on market demand, which may not always align with the perception of high quality. Prestige pricing effectively aligns with the expectations of those seeking high-quality products by leveraging the psychology surrounding luxury and exclusivity.