How price conveys indulgence
High prices relative to competitors can be a component in communicating a message of indulgence. Obviously the product, service or experience will need to justify the price premium, and the premium percentage must be credible. However, at the point of purchase, the price acts as confirmatory evidence of intended superiority.
Hill Station manufactures super-premium ice-cream in Calne, Wiltshire, England. It supports its position with super-premium prices. The company was founded in 1994 by two former JP Morgan bankers and Financial Times reported its flotation on the Alternative Investment Market (AIM) in October 2004.
Super-premium ice-cream differs from standard ice-cream on a number of dimensions. Standard ice-cream ...
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