PRICE DISCRIMINATION

Price discrimination:

In general under price discrimination the price of an product/service is not constant which vary from customer to customer sold by the seller in different markets.

First degree:  It is termed into one to one marketing like selling the product to the particular customer at diiferent prices

Second degree: Here in these second degree the price varies depending upon the quantity demanded. The seller may not differentiate the types of customer .so, in order to differentiate  the seller will provide some benefits to the customers

Third degree: Here in these degree the seller will charge different price to different customer groups. It is also called as group pricing 

Price discrimination is divided into three types

·         Perfect price discrimination

·         Market/segment based price discrimination

·         Price discrimination by self  selection

Examples of the price discrimination types

·         Auctions

·         Age based discounts ,social/economic reservations

·         Coupons/cash backs