Across many industries, companies now offer access to virtually identical services and products under different pricing structures. Price discrimination has been most successfully implemented in services as diverse as communications (e.g. mobile 'phones), media and entertainment (e.g. cable TV), transport (e.g. flights), service and hospitality (e.g. hotels and restaurants), pharmaceuticals and utilities (e.g. electricity).
Price discrimination is a microeconomic pricing strategy where identical or largely similar goods/services are transacted at different prices by the same seller in different markets. Price discrimination essentially relies on the variation in the customers' willingness to pay and in the elasticity of their demand.
Topics: Price Discrimination
How much should you pay for an item – any item? If you asked the majority of consumers they would say that a fair price would cover the cost of manufacture plus a little extra for profit.
Topics: Pricing, Price Discrimination