Price Discrimination

With multiple markets or customer groups, the potential exists to enhance profits by charging different prices and markups to each relevant market segment. Market segmentation is an important fact of life for firms in the airline, entertainment, hotel, medical, legal, and professional services industries. Firms that offer goods also often segment their market between wholesale and retail buyers and between business, educational, not-for-profit, and government customers.

price discrimination

A pricing practice that sets prices in different markets that are not related to differences in costs market segment

A division or fragment of the overall market with essentially unique characteristics

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