How price is discriminated for different segments of customers!

Price Discrimination:

It refers to the exploitation of demand characteristics, which allows the same product to be sold at various prices by the provider in the different markets.

Degrees of Price Discrimination:

1^st degree:

It varies when a firm charges a different price for every unit consumed.

2^nd degree:

In this, producer or a firm charges a different price for different quantities.

3^rd degree:

In this, producer or a firm charges different price for various consumer groups.

For Example:

1.    1. I have my personal account in HDFC Bank and even my father is having the same but the difference is he is having platinum credit card so he gets different offers by the bank such as premium offers on transaction by the credit card and I have Debit card so bank provides me different offers and limited offers as compared to my father.

2.      2.  My father is an optician and we are wholesalers and retailers as ell, we generally charge different to the retail customers who are buying 1-2 spectacles and we provide different rates to the wholesale customers who all are willing to buy in bulk.