By definition, ________ is used when a firm sells a product or service at two or more prices, even though the difference in price is not based on differences in cost.
A) segmented pricing
B) variable pricing
C) flexible pricing
D) cost-plus pricing
E) reference pricing

Question

Quizplus · Accepted Answer

Segmented pricing is used when a firm sells a product or service at two or more prices, even though the difference in price is not based on differences in cost. This is also known as price discrimination, where a company charges different prices for the same product or service to different customer groups based on factors such as location, age, income, or usage. The aim of segmented pricing is to capture more consumer surplus and increase profits. Variable pricing, flexible pricing, cost-plus pricing, and reference pricing are all pricing strategies that may or may not involve differences in cost as a basis for pricing.

By Definition, ________ Is Used When a Firm Sells a Product