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14 August, 13:08

Which of the following refers to a pricing strategy in which the price changes for different buyers based on order size or geographic location? A. Internet price discrimination strategy B. Freight absorption strategies C. Freemium pricing D. Trade discounts E. Channel discounts

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Answers (2)
  1. 14 August, 14:00
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    A. Internet price discrimination strategy

    Explanation:

    Price discrimination is a microeconomic pricing strategy where identical or largely similar goods or services are transacted at different prices by the same provider in different markets ...

    The purpose of price discrimination is to capture the market's consumer surplus. Price discrimination allows the seller to generate the most revenue possible for a product or service.
  2. 14 August, 16:01
    0
    Internet price discrimination strategy

    Explanation:

    Price discrimination is a pricing strategy where customers are charge different prices for the same goods and services at the discretion of the sellers, while taking advantages of peculiar situations.

    Of all the option given in the questions, the one that best describe the situation is internet price discrimination strategy, based on the assumption that the transaction took place over the internet medium and the seller was able to sell at various prices considering the sizes of the order and the locations involved.

    In the situation of price discrimination, buyers do not always know that the prices he buys is not the standard price.
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