Louboutin's decision to blame production costs for the high shoe prices is an example of which pricing strategy?

The pricing strategy that Louboutin is using by blaming production costs for the high shoe prices is known as cost-based pricing.

Here are the steps to understand this:

1. Identify the Pricing Strategy: In this case, the pricing strategy is identified by the way Louboutin is setting the price of their shoes. They are blaming the high prices on production costs.

2. Understand Cost-Based Pricing: Cost-based pricing is a strategy where the price of a product is determined by adding a profit percentage on top of the production cost. This means that the final price of the product includes the cost of production and a certain profit margin.

3. Apply the Concept: Louboutin is saying that the production costs of their shoes are high, and this is why the prices are high. This indicates that they are adding a profit margin on top of these high production costs, which is a clear example of cost-based pricing.