I saw a curious case of toilet paper price discrimination at Target. No I am not talking single ply vs. two ply. Here it is and tell me what you see and why. Same Charmin product – same quality and total quantity (501 sq ft). Yet the 12 pack bundle of mega ultra roll is … Continue reading Toilet Paper Price Discrimination
NPR’s Robert Smith claims Groupon’s success comes from simple economics, “Different people are willing to pay different prices for the same product”. Since some people are not willing to pay $18 for burgers but are willing to pay $9, Groupon makes it possible to bring these customers and sell them the same burger for lower … Continue reading Is Groupon a tool for price discrimination
Today AT&T and Verizon announced their venture, Isis, that is intended for mobile payments. They say it is a mobile payment network that will fundamentally transform how we shop, pay and save. I wonder if there is more to this than what they think is possible and what we think is the real purpose. Sure mobile … Continue reading With mobile payments, are we close to perfect price discrimination?
Consider these real life pricing scenarios that you see everyday: Six Flags Discovery kingdom sells its annual season pass for $49.99. According to its website, “Buy your Season Pass for $49.99, just $5 more than a one-day admission.” Now why would they give away an unlimited entry annual pass for “just $5 more than a … Continue reading Metered Price Discrimination, Customer Margin or in the Vernacular of Social Media – Freemium
Note to new readers: Do check out my other articles on versioning and price discrimination. It would help me greatly if readers coming from Rutgers or New Jersey let me know how they found this article. To my non Hindu readers the words “car puja” may not ring a bell (no pun). Almost every Hindu … Continue reading Price Discrimination at the altar of God
[tweetmeme source=”pricingright”] Economists are not good marketers otherwise they would not have named the greatest profit maximization scheme to date as Price Discrimination. The word discrimination evokes so much negative feelings that it is hard to justify price discrimination is legal, ethical and fair. If general discrimination is treating different people differently based on demographic … Continue reading Rebranding Price Discrimination – Breaking the Bad Rep