Ideas in this flowchart

• Prestige pricing uses high prices to signal value and status.
• High prices indicate high social status.
• This pricing is common in markets where status strongly influences customers.
• Specialty shops on Rodeo Drive use prestige pricing for Hollywood's super-rich customers.
• Shirts costing $65 elsewhere sell for at least $150 in these shops.
• A lower price would make customers perceive the shirts as low quality.
• Prestige pricing is also prevalent in services.
• Service providers with excellent reputations are more in demand and often have waiting lists.
• Services are tied directly to the people who provide them.
• Service providers have only limited time each week to provide services.
• When the calendar fills up, demand rises and prices become prestige prices.