Definition: Placing a high price on a product to research how much the consumer is willing to spend
How much would you pay for a pair of headphones? Or a tablet?
Backward pricing is used often for items such as these, using a high selling price to see if the consumer will pay up. Pricing this way is helpful to gauge if the cost of production is viable and set a standard price an item will be sold for in the future. Because this factor weighs heavily on the amount of money the consumer is willing to spend, the popularity of an item will keep purchase prices high until its momentum dies down.
Do you recall any products that were very popular and (in your opinion) not worth their expensive price tag?