Different segment, different price
Segment criteria are the second part of the price structure. Different types of customers may value a product more than others and be persuaded to pay more to obtain this value. Subject to customer perceptions of fairness, prices can be designated for certain segments. Examples are lower-priced admission to cinemas for children and discounted travel for senior citizens. It is necessary to be able to police these segments so that customers in one segment are not able to buy and resell to customers in a higher-priced segment. Wines and spirits brands are faced with this form of arbitrage. Prices vary between geographical markets and there is an incentive for drinkers to purchase in lower-priced markets – Norwegians ...
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