American Girl DollThe American Girl catalog began as a concept to introduce today's girls to girls who lived in the past. Each historically accurate doll is carefully crafted and dressed and has books to describe her life. For example, Kristen is an 1854 pioneer girl who is growing up in Minnesota. Her story begins with her long sea voyage from Sweden. The basic doll dressed in a calico dress and striped apron plus the hardcover story of how she got to Minnesota costs $90. Six more hardback books of Kristen's life are available for $74.95. Kristen's nightgown costs $20, and a matching one for the doll owner is an additional $38. Buy both together and the price is only $50. A hand-painted wooden bed and trunk for Kristen are available for $213. Shipping costs vary with the price of the
merchandise ordered.Refer to the American Girl Doll. You can buy a doll at Wal-Mart for $5.99. The high price of the American Girl doll is used to promote a high-quality image. The American Girl uses a _____ pricing strategy.
A. markup
B. demand-based
C. prestige
D. penetration
E. supply-derived
Answer: C
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