Price discrimination

Throughout history, prices were set between sellers and buyers through negotiations with one another. Usually in these circumstances, sellers would ask for higher prices, while buyers would offer less for certain goods or services. Through deals, they would come to a mutual agreement of price acceptance. Price is the only attribute in marketing mix that yields revenue, all other attributes produce costs (Kotler, 1997). Companies often use different pricing techniques to stimulate early purchase specially to accommodate differences in customers, products and locations. Marketers often refer to such pricing as discriminatory. Price discrimination is often used as a strategy for setting different prices for the same goods and services to different…

sellers and interdependent price-output decisions” (Hirschey, 2009, p.500). Only a small amount of companies are responsible for the majority of the industry’s output. Also, it is difficult to enter or exit the industry. Decision making is influenced in an oligopoly by the high rate of competition. Since there are only a few companies in the industry any change will generate an immediate response from the competitors. This means that when a change in pricing, output and advertising occurs…

Employment Opportunity Commission defines Sex Discrimination; involves treating someone (an applicant or employee) unfavorably because of that person sex/ gender. (EEOC, 2015). Most people apply for a job they feel that they are suitable for or have experience in, Most of the time when sex discrimination play a part in the work place; it based on that fact that two individuals doing the same job, but one getting paid a lot more. Majority of time this take place when the employees are male and…

The advanced pricing technique that would be most appropriate for a Sam’s Club or Costco would be second degree price discrimination. Second degree price discrimination is defined by Thomas and Maurice (2010, p. 583) as, “When a firm offers lower prices for larger quantities and lets buyers self-select the price they pay by choosing how much to buy.” Therefore, when the same consumer buys more than one unit of a good or service at a time the marginal value placed on consuming additional units…

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…

4). In order for a firm to apply price discrimination, they must yield an amount of monopoly power, be able to prevent arbitrage and there must be a difference in the elasticity of demand for the product or service (Ken, 2002, 4). Price discrimination can occur in a variety of different markets to include media and entertainment, communications, transportation and utilities such as electricity (Lambrecht et al, 2012, p. 424). Furthermore, Lambrecht et al (2012) notes that consumers have…

1-According to Miller, the price taker refers to a situation in which a company must accept the prevailing prices in the market of its products because the firm cannot influence the price (Miller, R. L. 2012). In other words, when there is competition, a firm must set the price of its product below the competitive price in order to obtain customers, but when the price is above the competitive price, customers will not buy that product. According to the author, the perfectly competitive model is…

Price Strategy n Price discrimination (3 Types) Taking into account the above information the following market strategy of price discrimination has been devised. Price discrimination exists when a firm with market power charges different prices to different consumers for identical products (Ruby, 2003). The conditions of price discrimination: 1) It must have market…

the work force sooner. Why are fewer people attending college? The New York Times describes that college attendance throughout the United States dropped by nearly five-hundred thousand this last year (Lehren and Martin). The truth is that not all people have the same advantages, and when trying to enroll at college, those disadvantages show more than ever. A lot of this falls into the category of price discrimination. Price discrimination is the practice of selling the same good or service at…

The following research paper will discuss the 3rd-degree price discrimination model within the airline industry, the basic revenue management model used by airlines and further price discrimination techniques, as well as primary research involving data gathered from Delta & Southwest Airlines. The collected data will ultimately be used to show the relationship between time of departure and fare price. Price Discrimination The 3rd-degree price discrimination model describes suppliers selling the…