To practice group pricing, you would segment your market so as to identify groups that
A)differ in the reservation price.
B)have an inelastic demand.
C)represent average demographic characteristics.
D)are based on difficult-to-identify characteristics.

Question

Quizplus · Accepted Answer

Group pricing is based on identifying different groups with different reservation prices. This allows for targeted pricing strategies that maximize revenue from each group. Therefore, the best choice is A, as it specifically mentions the differentiation in reservation prices. The other options are not necessarily relevant to group pricing.

To Practice Group Pricing, You Would Segment Your Market So