Effective differential pricing over time will generally
A)decrease the level of product availability for the consumer willing to pay full price and also decrease total profits for the retailer.
B)decrease the level of product availability for the consumer willing to pay full price but will increase total profits for the retailer.
C)increase the level of product availability for the consumer willing to pay full price and also increase total profits for the retailer.
D)increase the level of product availability for the consumer willing to pay full price but will decrease total profits for the retailer.

Question

Quizplus · Accepted Answer

Effective differential pricing over time involves adjusting prices based on demand and supply, and targeting different customer segments. By offering discounts to price-sensitive customers or charging higher prices to customers who are willing to pay more, the retailer can increase the level of product availability for those customers who are willing to pay full price, while also increasing total profits. This is because the retailer can capture a larger share of the total value of the product by targeting different customer segments with different prices. Thus, choice C is the best answer.

Effective Differential Pricing Over Time Will Generally