What is the main objective of prestige pricing?

Prestige pricing primarily aims to attract high-income, discerning consumers by setting prices at a higher level than competitors. This strategy aligns with the perception that higher prices often signal superior quality, exclusivity, and luxury. When products are priced at a premium, they appeal to consumers who associate price with value and status, thereby fostering an image of sophistication and prestige around the brand.

This approach is fundamental in industries such as luxury goods, high-end fashion, and fine dining, where consumers are willing to pay more for the perceived value and status that come with high-priced items. By targeting this specific demographic, companies utilizing prestige pricing can create a strong market position and differentiate their brand from others in a crowded marketplace.