Why would a seller choose the hurdle method instead of group pricing to price discriminate?
A)The seller wishes to make it more difficult for customers to deal with the seller's company.
B)The seller realizes that those who are willing to go over a hurdle to get a product are willing to pay more for it.
C)The seller knows that hurdles increase customer interest in the product.
D)The seller cannot find a verifiable, hard-to-change characteristic on which to base the group segmentation.

Question

Quizplus · Accepted Answer

The hurdle method is used when the seller cannot find a verifiable, hard-to-change characteristic on which to base group segmentation. Instead, the seller sets up a hurdle that customers must overcome to purchase the product, such as filling out a lengthy application or waiting in line for a limited quantity. By doing so, the seller can price discriminate based on customers' willingness to go through the hurdle, which is unrelated to any verifiable characteristic.

Why Would a Seller Choose the Hurdle Method Instead of Group