Price Discrimination

Definition of Price Discrimination

It’s a method where you price the exact items differently for each customer. Typically, they price it at the highest point that they will pay.

Price Discrimination

Description of Price Discrimination

Here, typically those in the upper class get charged more whereas those with a smaller income can pay less for an item.

Advantages of Price Discrimination

It can help raise profits allowing companies to stay in business. Additionally, they can gain the attention of more shoppers by havings smaller prices in a peak time. Also, those with smaller incomes will benefit, thus gaining more customers.

Price Discrimination

Disadvantages of Price Discrimination

You’ll have unhappy customers that won’t be willing to pay, more thus you’ll lose both profit and customers.

Price Discrimination