Forms (Basis) of Price discrimination

Forms (Basis) of Price discrimination

  1. Price discrimination according to personal   income.   This  is where  different   prices  are charged  to different   income   groups  for  example   charging   low  prices  to  the  low  income   earners   and  high prices  to the rich for the same service.
  2. Price discrimination according   to sex and age.  This  is where  different   prices   are  charged   for different  sexes  or ages for example  higher  charges  may be fixed  on tickets  for a football  match  for adults  and  lower  charges  tor  the  children,   lower  charges  on  tickets  for  a dance  for  females   and higher  charges  for males.
  3. Price discrimination according to status.   Students or soldiers in uniforms   may be charged lower than other groups of people for certain services like transport and entertainment.
  4. Price discrimination according     to   geographical     factors.      Price    discrimination      may    be geographical, for example   dumping   where   commodities    are sold at lower   prices   in   a foreign market as compared to the one charged in the domestic market.
  5. Price discrimination according to time of service.  This is where different   prices are imposed   on consumers   when getting services   at different   times or period   e.g.  film  shows   tend  to  be  more expensive    on  weekends    as  compared    to  week   days,   evening   dances   are  more   expensive as compared   to dances  organized  during  day time.
  6. Price discrimination according to use.  For example, during transportation,    low transport   charges can be charged on essential commodities   and high transport charges for luxurious   commodities.
  7. Price discrimination according to differentiation of product.    This   is where   consumers    are charged   differently   according to the class.  For  example  seats  in air transport,   first  class  seats  are charged  higher  amounts  as compared  to other  classes.

8. Price discrimination     according   to the nature   of the product.    For example   packed   commodities are charged   higher amounts as compared   to unpacked   commodities    even if they are of the same quality.

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