Price discrimination
Price discrimination or price differentiation is a pricing strategy where transactions are identical or similar to the goods or services at different prices for the same provider in different markets or territories. It is selling the same product with different prices for different consumers. Airlines industry defiantly using the price discrimination strategy, for example, if a person bought a ticket two days before the trip, the airlines company will give this customer a higher price. unlike someone who bought a ticket before the flight by two months, because the first person is in need of travel as fast as possible so he will be ready to pay even if the price is high. There is a difference also in the prime time, when …show more content…
This pattern makes a list of declining prices for different quantities. Using this strategy the company can pulls some of the consumer excess without knowing much about the single consumer. The consumer chooses the sum of products they want to consume with the posted prices, and this let consumers to distinguish themselves based to penchant. Therefore, if the customer wants a high quality product he will pay as much as he can to pay even if it a high price but if the customer wants a low quality product he will pay for a low price. For example, if the customer wants business class in the plane he will pay as much as the price was unlike someone who wants an economy class he is asking for a low quality to pay a lower price, the difference quality here in services, meals and seat capacity. This type of discrimination you can easily see it in the bulk purchases of large consumers like Walmart, who in turn pass the savings onto the eventual …show more content…
Companies that know the broad demographics about the specific types of consumers will supply, prices like that everyone will be able to consume the product. In order for this form of employment discrimination, company must be able to predict the demand elasticity in different consumers. For example, if an adult took his kids to the cinema he will pay more than his kids will because there is a difference in age, a ticket for the adults are not the same for kids. Another example; most of the shops or museums monthly do a student discounts for universities students. That is what the third degree all about; there are differences the companies use for their customers because customers are not all the
Price discrimination or price differentiation is a pricing strategy where transactions are identical or similar to the goods or services at different prices for the same provider in different markets or territories. It is selling the same product with different prices for different consumers. Airlines industry defiantly using the price discrimination strategy, for example, if a person bought a ticket two days before the trip, the airlines company will give this customer a higher price. unlike someone who bought a ticket before the flight by two months, because the first person is in need of travel as fast as possible so he will be ready to pay even if the price is high. There is a difference also in the prime time, when …show more content…
This pattern makes a list of declining prices for different quantities. Using this strategy the company can pulls some of the consumer excess without knowing much about the single consumer. The consumer chooses the sum of products they want to consume with the posted prices, and this let consumers to distinguish themselves based to penchant. Therefore, if the customer wants a high quality product he will pay as much as he can to pay even if it a high price but if the customer wants a low quality product he will pay for a low price. For example, if the customer wants business class in the plane he will pay as much as the price was unlike someone who wants an economy class he is asking for a low quality to pay a lower price, the difference quality here in services, meals and seat capacity. This type of discrimination you can easily see it in the bulk purchases of large consumers like Walmart, who in turn pass the savings onto the eventual …show more content…
Companies that know the broad demographics about the specific types of consumers will supply, prices like that everyone will be able to consume the product. In order for this form of employment discrimination, company must be able to predict the demand elasticity in different consumers. For example, if an adult took his kids to the cinema he will pay more than his kids will because there is a difference in age, a ticket for the adults are not the same for kids. Another example; most of the shops or museums monthly do a student discounts for universities students. That is what the third degree all about; there are differences the companies use for their customers because customers are not all the