The pricing strategy that assigns an arbitrarily high suggested retail price to a small publication aims to influence consumer perception of value. This inflated figure, often disconnected from the actual production cost or market demand, serves as a reference point against which the discounted selling price appears exceptionally attractive. For example, a pamphlet might be assigned a suggested price of $100, even if sold for $5, thereby creating the illusion of a significant bargain for the purchaser.
This approach can be implemented to generate excitement and drive sales, particularly in contexts where perceived value is as important as inherent value. Its historical roots can be traced back to various marketing tactics used to promote products as exclusive or high-end, regardless of their true worth. A perceived discount may lead to increased sales volume and heightened brand recognition, though ethical considerations surrounding misleading pricing practices are paramount.
