Saturday, September 15, 2018

Price discrimination is a driving force in commerce


                   PRICE DISCRIMINATION

In a competitive market, price discrimination occurs when identical goods and services are sold at different prices by the same provider. Price discrimination is the practice of charging different customers different prices for the same product or service. Companies uses price discrimination in order to make the most revenue possible from every customer.

For example: when a new movie was released previous week, I decided to watch that movie with my friend. But unfortunately we have our classes from Monday to Saturday, and the price of the tickets were less as compared to Sunday. And as a movie freak I have to book the tickets for Rs 350/- each, whereas it was Rs 250/- other days. And also the price of the movie tickets may differ at various cinema halls.

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