In the hurdle method of price discrimination, a seller gives a lower price only to those who are price sensitive by
A)identifying a characteristic of those who are price sensitive and giving that group discounts.
B)requiring price-sensitive buyers to do something extra to get a lower price.
C)identifying those who are price sensitive by the goods they buy and then discounting those goods only.
D)choosing a discount pattern so that every fifth or 100th (or whatever chosen frequency) customer receives a discount.

Question

Quizplus · Accepted Answer

In the hurdle method, the seller gives a lower price to price-sensitive buyers but requires them to do something extra to get the lower price. This can include filling out a survey, signing up for a loyalty program, or providing proof of income. By adding this extra step, the seller can identify which customers are truly price-sensitive and adjust their pricing strategy accordingly. This method allows the seller to capture some additional revenue from customers who are not as price-sensitive while still offering discounts to those who are.

In the Hurdle Method of Price Discrimination, a Seller Gives