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Denise Dahlhoff and Z. John Zhang

This chapter highlights the factors that make pricing luxury goods and services a distinctive challenge, requiring possibly more art than science to determine a suitable price. It points out key features of luxury goods and services and describes common pricing methods. Moreover, it features academic theories that explain the consumer psychology of luxury purchases and describe how counterfeits can foster minimalist or excess models of luxury consumption. Finally, it suggests areas for future research considering current trends in global luxury markets.