PRICE DISCRIMINATION
Price discrimination refers to the pricing strategy
where a seller charges different among different consumers on the basis of
maximum price he or she pays. In other words, a seller places potential customers
with similar needs and wants in similar groups and then charges from each group
differently. The seller categorizes groups on the bases of their attributes
such as, age, sex, geographical locations etc...
For instance, Diwali
is near, therefore everyone is in a hustle to rush back to their natives. As we
all wait for this festive season to meet our near and dear ones we book tickets
well in advance. Therefore, when I got my academic calendar, our holidays were
dated from 4th of November till 12th November. So it was
announced well in advance. Me and my friends started to search for tickets in the
month of august itself. At that time price ranged from 5000-6000 for one side. We
felt that the prices were really high and we decided to wait further. But as
soon as we waited further the prices tend to increase. What might be the cause
of such situation. It is because of seasonal times where the airlines
industries tend to increase flight fares because of high end demand. Therefore,
people tend to book tickets well in advance. When demand for a particular
flight is high, the airlines raise ticket prices. Whereas, when tickets for a
flight is not selling well they reduce prices.
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