Pricing above the market

              Pricing above the market is an pricing method that some companies use. A company might choose to use this method for all of their products. Or they could focus on one product particularly. Examples of companies that use this pricing is Tiffany's. Everyone one generally knows that when you see Tiffany's signature blue box, not only do you know where the product came from. You also know that the product is expensive, which in consumers minds leads to a superior product. Tiffany's has achieved this with not only a single necklace, or a single watch but their whole jewelry line. Another example of this would be the car Ferrari. Even though Chevrolet makes very affordable cars to the top of the line Ferrari. Everyone knows when they see a Ferrari just how fast and expensive the car is. So the company has created brand recognition as long as pricing above the market. If we look at similar sports cars such as the Chevrolet Camaro these cars both have the same manufacture but offer two different experiences. Even though in 2016 most cars come with Bluetooth, reverse camera, daytime running lights, and a sunroof. Even if we put all the top of the line amenities into a Camaro it still would not compare to a unloaded Ferrari. Chevrolet can price a Ferrari above the market because they know they have a superior product and consumers are willing to pay for the superior high performance product.
          One thing I have noticed in my research is that brand recognition, brand loyalty, and pricing above the market go hand in hand.  If consumers have brand loyalty they will purchase a product regardless of the price. Such as the fans of Nike Jordan's. Obviously the shoes wont make you walk, run, or jump any better but consumers are willing to pay an above market price for these goods. Another example would be the grocery store Publix's. Publix's is known to offer an "experience". The store is well lite, clean, cool, and employees go above and beyond to be friendly. Consumers want to experience this, so they don't mind paying high prices for goods as opposed to Walmart. So in short if a company knows that it has a superior product or offers a superior service, they will be successful pricing above the market. But the minute that pricing does not equal quality consumers will no longer be wiling to pay the high prices. So companies must focus on always keeping their goods or service top of the line