When museums charge a lower admission fee to students and senior citizens, then this form of price discrimination is known as ________.
A) location pricing
B) channel pricing
C) customer-segment pricing
D) special-customer pricing
E) loss-leader pricing

Question

Quizplus · Accepted Answer

Customer-segment pricing is the practice of charging different prices to different groups of consumers for the same good or service. In this case, museums are charging a lower admission fee to students and senior citizens, which is an example of customer-segment pricing. Location pricing is charging different prices for a product or service based on its location, channel pricing is charging different prices for the same product sold through different channels (e.g. online vs. in-store), special-customer pricing is offering discounts or perks to specific customers (such as loyal customers), and loss-leader pricing is offering a product at a low price to attract customers to buy other items at regular prices.

When Museums Charge a Lower Admission Fee to Students and Senior