What is 'Prestige pricing' aimed at achieving?

Prestige pricing is a strategy aimed at increasing the perceived value of a product or service. This approach involves setting higher prices to create an impression of exclusivity or luxury. By doing so, companies communicate to consumers that their offerings are of higher quality, which can enhance the brand's status and allure. This perception can attract consumers who equate higher prices with superior craftsmanship, rarity, or a prestigious lifestyle.

For example, luxury brands often utilize prestige pricing to position their products distinctly within the market, thereby attracting customers willing to pay a premium for the perceived value associated with those brands. The strategy primarily targets consumers who associate higher prices with greater quality and status, and it can significantly influence their purchasing decisions.

In contrast, other strategies mentioned do not align with prestige pricing; they focus on different objectives such as cost efficiency, encouraging mass consumption, or broadening market access, which does not inherently align with the core intent of prestige pricing.