1.
Principle of demand
Indian Railways provide “Tatkal ticket”. It is provided only day before
the journey. The demand of “Tatkal ticket” always remains high. So Indian Railways
charge extra money for “Tatkal ticket”. By doing this Indian Railways generate
more revenue.
2. Economies of scale
Company or industries try to increase their production or output so they
can decrease their fixed cost.
Example: Indian Railways always try to carry huge number of traveler so
that the fixed cost like electricity cost, diesel cost, salary of loco pilot
etc. decrease per customer.
3. Market/ Segment based price
discrimination
This type of price discrimination was created for targeting a particular
segment or group.
Example: Indian Railways offer special discount on ticket for senior
citizen. They do this for targeting and attracting more senior citizen
traveler.
4.
Economics of scope
Economies of scope occur when products share common inputs and
diversification leads to cost savings.
Example: IRCTC is a subsidiary of Indian Railways. Previously it offers catering
service only for Indian Rail. Now a day, they offer catering service for
corporate also.
5.
Customer taste and preferences
Indian Railways offers various types of ride for various types of
customer. ‘Rajdhani Express’ offers premium ride for elite customer and on the
other hand, ‘Garib Rath’ offer economy ride for poor customer.
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