Question

What is the case when a single price becomes a price discrimination strategy? Describe your own experience.

Answer 1

Single Price System:- In this system, the price of a product or commodity will have the same price globally, regardless of location and other factors.

Price discrimination is a selling strategy that assess customers different prices for the same product or service based on what the seller conceive they can get the customer to agree to.

Firms can maximise their profits using price discrimination strategy. It is one of the most worthwhile forms of marketing.

When a single price becomes a price discrimination strategy,

Examples,

1. When we buy a 12 pack of toilet rolls, it is probably cheaper thean buying a smaller quantity. The price of small quantity remains same but in larger size product or large quantity product price will change.

2. Many airlines offer numerous way to charge different prices for variation on a plane tickets. The reason for this discrimination is the season time, day of the week, availability of seats.

3. Coupons on selected products and services also creates the price discrimination. All products have same prices, if firms gives special discount coupons to selected customers, it will create price discrimination.