The idea behind price discrimination is
A)To be able to sell to high-value customers,who value the product most
B)To be able to sell to the marginal customers,who are indifferent about the purchase
C)To be able to sell to the low-value customers,who would otherwise not buy the product
D)To be able to sell to both high and low value customers at different prices

Question

​The idea behind price discrimination is
A)​To be able to sell to high-value customers,who value the product most
B)To be able to sell to the marginal customers,who are indifferent about the purchase
C)To be able to sell to the low-value customers,who would otherwise not buy the product
D)​To be able to sell to both high and low value customers at different prices

Quizplus · Accepted Answer

Price discrimination allows companies to sell to both high and low-value customers at varying prices. By segmenting the market and charging different prices to different groups of customers, companies can maximize their profits by capturing more revenue from those willing to pay a higher price and increasing demand from those who would not otherwise buy the product at a higher price. This strategy is common in industries such as airlines, hotels, and entertainment where prices can vary based on when the product is purchased, the time of day, or the day of the week.

​The Idea Behind Price Discrimination Is

The Idea Behind Price Discrimination Is