Main characteristics of the Image Pricing Strategy
two products with exactly the same features/characteristics
different prices
One firm supplies the market with its current product, offering it in various shapes, names or model numbers. Consequently, the differences are expressed only by changing the image of the product.
The intention is to signal higher quality to uninformed customers, who would prefer to buy the higher priced version in order to make themselves sure of the quality.
Furthermore, the profits gained from the higher priced products are used to subsidize the lower priced version.
Examples
alternative brands of cosmetics, soaps
wines
Real Life Example
A Bulgarian factory is producing clothes not only for the Bulgarian market, but also for H&M. (H&M will be present in Bulgaria just in 2012).