Upscale target pricing
Upscale target pricing refers to the use of carefully designed deposit advertising programs and deposits pricing schemes to appeal to customers with higher levels of income or net worth, such as business owners and managers, doctors, chartered accountants, lawyers, and other professionals.
Banks use upscale target pricing. It means aggressively concentrating on high-balance, and low-activity accounts by using carefully designed advertising for targeting established business owners and managers and other high-income professionals.
Upscale target pricing indicates the setting of fees and prices on deposit accounts with the purpose of attracting customers who possess high balances and buy the bank services. Banks utilize carefully designated advertising programs for targeting established professionals like doctors, professors, and lawyers, business entrepreneurs and managers, other high-income groups with services and service charges that result in high-profit margins. Banks may price other deposit accounts, specifically the low-balance, and high-activity ones to break even or they may discourage those accounts altogether through higher pricing.
Use of the term in Sentence:
- The professor is discussing upscale target pricing in the financial institution and bank management class.
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