The fact that senior citizens are charged a lower price at movie theaters than are younger adults is an example of ____ pricing.
A) price-lining
B) Promotional
C) Professional
D) Differential
E) psychological

Question

Quizplus · Accepted Answer

Differential pricing is when different prices are charged to different groups of customers for the same product or service. In this case, senior citizens are being charged a lower price than younger adults, which is an example of differential pricing. Price-lining is when different prices are charged for different versions or models of a product, promotional pricing is when temporary discounts are offered to boost sales, professional pricing is when prices are set by members of a certain profession, and psychological pricing is when prices are set based on perceived value or consumer psychology.

The Fact That Senior Citizens Are Charged a Lower Price