Malia sells headbands that are identical except that some do not have a small embroidered logo. Those with the logo sell for $10, and those without the logo sell for $5. Malia is using the price discrimination strategy of _____ through _____ to increase her revenue.
A)group pricing; alternate versions
B)the hurdle method; imperfect goods
C)segmentation; shopping around
D)the hurdle method; fluctuating prices

Question

Quizplus · Accepted Answer

Malia is using the hurdle method by offering imperfect goods (headbands without the logo) at a lower price to segment the market and increase revenue.

Malia Sells Headbands That Are Identical Except That Some Do