Saturday, September 8, 2018

PRICE DISCRIMINATION- Taking different prices for identical goods


                      

              Price Discrimination


Price discrimination is a price strategy of different firms where identical or similar goods are given at different prices to the consumer.
Exploiting demand characteristics to allow the same product to be sold at various  prices unrelated to the cost of supply.

Example:

When I used to play cricket my cricket club used to charge Rs 600 from non-government employee’s son and it charges Rs 400 from the government employee’s son.

 Example:2


Charging 8 Rs for a cup of coffee from the students in the school canteen, whereas charging 10 Rs from other people for the same cup of coffee is another example of price discrimination.


No comments:

Post a Comment

IMPACT OF SOCIETY /SOCIAL GROUPS ON PURCHASE INTENTIONS OF HOME BUYING- Consumers are the most important factor that will make any bus...