Test: 1 Which statement about the prestige pricing is not true? a)The high cost of effective marketing

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Question:

Test:

№1 Which statement about the prestige pricing is not true?
a)The high cost of effective marketing is a serious premium pricing drawback. If the business owners aren’t eager to invest sufficient funds, it’s impossible to create a premium brand image.
b)A low-end business rarely becomes a luxury brand. Prestige pricing is something that must be used from the very beginning.
c)Customers won’t pay high prices for things that they have never heard of. So, if you’re not capable of funding your marketing campaign, it’s better to avoid this strategy and stick with regular, competitive price.
d)Image (premium) pricing typically uses much less psychological tricks to increase sales and product visibility in comparison with other types of pricing strategies.

№3 Which statement about the prestige pricing is True?
a)Premium pricing is a strategy to address niche customers that associate quality of a product with its price. These are those consumers that don’t define their social status with the things they own.
b)If people admire your brand and respect its identity, premium pricing will actually doesn’t help your sales because it doesn’t show how valuable your product is.
c)Prestige pricing can be effective for companies that limit their production and market them as an exclusive service or a product.
d)To use prestige pricing strategy the company should, firstly, build a worldwide brand or an image of a legendary organization and only after that this strategy will be a success.

№4 Which statement about the prestige pricing is False?
a)The idea of premium pricing is to set higher prices and convince the buyers that the product has an added value compared to its competitors.
b)Because luxury brands target all wealthy people such approach as segmentation is not relevant here.
c)People obsessed with premium priced products care less about the actual quality and core value. The main objective of such customers is self-expression and the fact that not everyone can own the product they just bought.
d)“Prestige pricing” means that “these products aren’t for everyone”, so only some can afford to own it. Therefore, one of the disadvantage of prestige pricing is that it limits customer base, shrinks it and eventually, may decrease annual income.