What does prestige pricing aim to convey?

Prestige pricing aims to convey an image of status, luxury, and superior quality through higher pricing. This strategy is rooted in the perception that consumers often associate higher prices with better quality and exclusivity. By positioning a product or service at a premium price point, businesses aim to attract a target market that values prestige and is willing to pay more for products that they perceive as being of higher status. This creates a brand identity that is linked to quality, sophistication, or exclusivity, fostering a sense of prestige among consumers.

In contrast, the other pricing strategies focus on different aspects. Affordable pricing targets budget-conscious consumers, emphasizing accessibility rather than exclusivity. A focus on high volume sales typically involves lower pricing to attract a larger customer base, which is opposite of the exclusivity that prestige pricing seeks to establish. Discounted pricing is geared toward promotions and is designed to encourage immediate sales through lower prices, again diverging from the strategy of maintaining a high price to suggest high quality and status.