Asked by Sarah Saintilus on Jul 17, 2024
Verified
The idea behind price discrimination is
A) To be able to sell to high-value customers,who value the product most
B) To be able to sell to the marginal customers,who are indifferent about the purchase
C) To be able to sell to the low-value customers,who would otherwise not buy the product
D) To be able to sell to both high and low value customers at different prices
Price Discrimination
A pricing strategy where identical or substantially similar goods or services are sold at different prices by the same provider in different markets or to different buyers.
High-value Customers
High-value customers are individuals or entities that generate a significantly higher profit margin or revenue for a business compared to the average customer.
Low-value Customers
Customers who contribute minimally to a company's profitability, often requiring more resources than they generate in revenue.
- Gain insight into the theory of price discrimination and how it is applied in varied business environments.
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Learning Objectives
- Gain insight into the theory of price discrimination and how it is applied in varied business environments.
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