When Yolanda went shopping, she paid a lot to buy a jacket that had a well-known designer's tag attached to it

After a few days, she came across a jacket which was undistinguishable from the one she had bought but was priced 5 times lesser than the earlier one. She didn't give this a second thought because she was convinced that the designer label she had bought was worth it. What can be deduced from this?


Yolanda was using the price as an indicator of quality. She was using image pricing. This kind of pricing is especially effective with ego-sensitive products such as perfumes, expensive cars, and designer clothing.

Business

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