Mario's Bed & Breakfast is willing to offer discounts to customers, but it does not advertise discounts. Discounts are given only to customers who ask if any discounts are available or who seem very indecisive when inquiring rates. As a result of this practice, some customers pay full price, and others pay lower prices. Mario is practicing _____ through _____.
A)segmentation; group pricing
B)price discrimination; quantity discounts
C)hurdle method; segmentation
D)price discrimination; the hurdle method

Question

Quizplus · Accepted Answer

Mario's Bed & Breakfast is practicing price discrimination through the hurdle method. This is because they are offering different prices to different customers based on their willingness to pay or their perceived ability to pay (hurdles). Customers who ask for a discount or seem indecisive may be given lower prices, while others pay full price. This is a common practice in the hospitality industry and allows businesses to increase their profits by charging different prices to different customers.

Mario's Bed & Breakfast Is Willing to Offer Discounts to Customers