The fact that a meat pie cost three times more at the AFL Grand Final than the same meat pie cost at suburban Sam's Café is an example of ________.
A)allowance pricing
B)captive-product pricing
C)penetration pricing
D)segmented pricing
E)promotional pricing

Question

Quizplus · Accepted Answer

The pricing strategy used in this scenario is segmented pricing, where different prices are charged for the same product in different markets. The AFL Grand Final is a premium event, and people are willing to pay more for food and beverages at the stadium. On the other hand, suburban Sam's Cafe caters to a different market segment, where people are not willing to pay as much for a meat pie.

The Fact That a Meat Pie Cost Three Times More