The Relationship between Prestige Pricing and Advertising Choices

Prestige set is a pricing strategy through which brand image of a carrefour is enhanced by the price unyielding for it. This pricing strategy is also termed as psychological strategy as the consumers feel that since the price of a product is higher(prenominal) than its former(a) competitive products in the market, it might be superior in persona. They dresst even try to find out whether in that location is any difference in the ingredients or construction of the higher and lower priced product or not. Due to this pricing strategy, the top brands enjoy higher share in the market even when their products are priced 30%to 40%higher than a convertible product with no brand value.Cosmetics, drugs, apparels etc. enjoy more market share if they have heavy(p) brand image. Prestige pricing can also be termed as a non-pricing strategy because there is no need for the advertizing to mention price at all. Instead, in the advertizement of these products more counsel is paid on service a nd quality. The lesser a client knows about the quality of a product the better are chances of him to get lured by the advertise of the product. If the product has a good brand value, the customer is fully confident about its quality and dont even look at its advert from a point of view of getting assured of its quality.Advertising choices for prestige priced products are immense because the manufacturing business has enough money to splurge upon advertisements. Hence he can afford the best announce options. If he is publicize in print medium he chooses the best life style magazines because its glossy pages pronounce volumes about the product even without any product information.He has the option of paying the high compose celebrities to endorse the brand. Just the image of the celebrity along with the product is enough to grab the attention of the consumers. If the manufacturer does not apply the prestige pricing strategy, his advertising choices get limited. The more the pr ice, the better are the advertising options. Karlof and Lovingsson (2005, p. 286) have rightly observed the following effects of the interrelation between prestige pricing and advertising choices competition is lowdemand exceeds supplya company enjoys the position of virtual monopolyIn the wrangle of Griffiths and Wall (2004, p.163) If manufacturers can create an association in consumers mind that premium prices mean higher quality and exclusiveness, then they can engage in prestige pricing. This can be done none other than advertising. Advertising choices and prestige pricing are inter relate. So the practice of psychologically influencing the consumers choices is evident from the sophisticated advertising campaigns of all the high priced products in the market.The money spent on producing a product is cost objet dart the price is the money the consumer spends to buy that product. In the prestige pricing strategy the price is not related to the value of the product but the consume rs are made to feel that way. This is not possible without the range of advertising choices available in this kind of strategy. So it can be concluded that prestige pricing and advertising choices go hand in glove.Word count 535ReferencesArens, W.F. and Bovee, C.L. (5 Ed.). (1994). Contemporary Advertising. USA IRWINGriffiths, A. and Ison, S. (2002). Business Economics. UK Heinemann.Griffiths, A. and Wall, S. (Ed.). (10 Ed.). (2004). Applied Economics. England Pearson nurture Limited.Karlof, B. and Lovingsson, F. (2005)The A-Z of Management Concepts And Models.London Thorogood Publishing.