In 1996,Victoria's Secret shipped different catalogs to customers based on their buying habits.Frequent customers received catalogs with lower prices,whereas new customers received catalogs with higher prices for those same items.Victoria's Secret was practicing
A) monopolistic competition.
B) reservation pricing.
C) price retention.
D) efficient pricing.
E) price discrimination.

Question

Quizplus · Accepted Answer

This practice of offering different prices to different customers based on their buying habits is known as price discrimination. In this case, Victoria's Secret is using a form of price discrimination called "third-degree price discrimination" by targeting different prices to different customer segments.

In 1996,Victoria's Secret Shipped Different Catalogs to Customers Based on Their