giving a high price (perhaps an excessively high price) to a luxury product to reinforce its luxury image.

Prestige pricing refers to the practice of setting a high price for an product, throughout its entire life cycle – as opposed to the short term ‘opportunisticâ€(tm), high price of price ‘skimmingâ€(tm). This is done in order to evoke perceptions of quality and prestige with the product or service.

Setting a price high to create the image of quality.