A local boutique is having a sale on sweaters, but customers are not aware of the sale until they are already in the store. In other words, there is no advertising of the sale other than signs in the back of the store that cannot be seen from the outside. All sweaters are marked as 35% off. Is this price discrimination? Yes / No.

Question

Social Studies

Leonardo Huber

7 November, 11:58

A local boutique is having a sale on sweaters, but customers are not aware of the sale until they are already in the store. In other words, there is no advertising of the sale other than signs in the back of the store that cannot be seen from the outside. All sweaters are marked as 35% off. Is this price discrimination? Yes / No.

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Answers (1)

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Lillianna Compton · Answer 1

There is no exact answer to this question. It can be price discrimination in a particular situation or it can't be price discrimination in other situation.

Explanation:

Price Discrimination:

It is such a selling strategy in which the owner of a business charges his customers differently for a single product or a service based on the criteria he/she has developed.

With price discrimination, different products are sold with different prices to customers depending their demographics and buying force.

Situations of Price Discrimination:

It can be price discrimination if the local boutique offer more than 35% discount on bulk purchasing. If a customer can't read the sale signs and the owner of the boutique sells the product without giving any discount.

Situation of No Price Discrimination:

If the customer doesn't know about the discount but the owner gives me the discount without asking then it is not a price discrimination. If the owner of the shop doesn't offer more than 35% discount or any rewards on bulk shopping then it is also not a price discrimination.