Charging different segments of the market different prices is called ______.
A) value-based pricing
B) price discrimination
C) cost-oriented pricing
D) diversity pricing

Question

Quizplus · Accepted Answer

Charging different segments of the market different prices is known as price discrimination. This strategy is used to maximize profits by charging customers according to their willingness to pay for a particular product or service. It is often based on factors such as geography, demographics, and usage patterns. Value-based pricing involves setting prices based on the perceived value that customers derive from a product or service. Cost-oriented pricing is based on the costs incurred to produce, distribute, and market a product or service. Diversity pricing is not a commonly used pricing strategy.

Charging Different Segments of the Market Different Prices Is Called