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      Question

      If customers perceive a bank as premium due to high

      pricing alone, the strategy reflects:
      A Value-based pricing Correct Answer Incorrect Answer
      B Psychological pricing Correct Answer Incorrect Answer
      C Premium pricing Correct Answer Incorrect Answer
      D Cost-plus pricing Correct Answer Incorrect Answer
      E Penetration pricing Correct Answer Incorrect Answer

      Solution

      Premium pricing sets higher price intentionally to signal superior quality and exclusivity.  Why Other Options Are Incorrect • A: Based on customer value perception. • B: Pricing tactics like ₹999. • D: Cost-based calculation. • E: Low entry price.  Banking Example: High-fee exclusive credit cards.

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