Fundamentals of Business Analysis and Strategy
Demand elasticity can be used as the basis for dividing customers into different groups. This grouping allows companies to charge different prices for the same product in different market segments. This enables the company to increase its profit margins beyond what it would have if the pricing was flat. This technique is called price discrimination. It is a sales strategy whereby customers charge different fees for the same product based on the seller’s perception of the customer’s purchasing power (Twin et al., 2021). Sellers strive to price goods and services at the highest price customers are willing to pay. Price discrimination is used to capture consumer surplus and convert it into profit.
It is worth noting that different prices can be set for the same item only if consumers perceive the items as different and rate them differently. In this case, separate demand curves develop in different market segments where prices may differ. There is no price discrimination when different goods or services are priced differently. For example in a
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.
Read moreEach paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.
Read moreThanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.
Read moreYour email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.
Read moreBy sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.
Read more