Can a company sell the same product at different prices?
Firms practice price discrimination when firms sell the same product at different prices. Price discrimination involves charging higher prices to less price sensitive consumer and lower prices to more price sensitive customers. Price discrimination can only occur in market where the firms has a degree of market power.
Why same product is sold for different price at different location?
Different stores have different contracts with suppliers and that varies the cost they pay. According to the Georgia Retail Association, stores that buy larger volumes of product can typically get them for cheaper prices, so the price you pay is typically lower.
When two companies that sell the same product in different markets is called?
A market extension merger takes place between two companies that deal in the same products but in separate markets.
Why Amazon has different prices for the same product?
Amazon is a marketplace and don’t sell products on their own. Sellers get registered there and list the prices. There are many sellers for the same product who compete with each other to generate more sales. That is why you find same products with different prices.
What are the examples of price discrimination?
Many industries, such as the airline industry, the arts and entertainment industry, and the pharmaceutical industry, use price discrimination strategies. Examples of price discrimination include issuing coupons, applying specific discounts (e.g., age discounts), and creating loyalty programs.
What are the types of pricing?
11 different Types of pricing and when to use them
- 11 different types of pricing.
- 1) Premium pricing.
- 2) Penetration pricing.
- 3) Economy pricing.
- 4) Skimming price.
- 5) Psychological pricing.
- 6) Neutral strategy.
- 7) Captive product pricing.
Why are identical products sold at different prices?
The study shows that the retail industry operates with different prices for completely identical products, such as for example 1.5-litre bottles of Coca-Cola or Milo wool detergent. The price variations are relatively modest for some products]
Can a firm sell the same product at different prices?
Therefore, the firm can decide to sell the same product to different consumers at different prices. This way, the firm can therefore mitigate the loss from the consumers who charged the low price by selling to consumers who can therefore afford the high price.
Why are companies selling same drug in different prices?
In some cases, the two products of the same company having same drugs and their label claim are being sold at different prices. For instance, Atenolol tablets 50 mg (strip of 14 tablets) manufactured by IPCA Laboratories Ltd. with the name Teno 50 are being sold for `25 and with the name Tenolol 50 for `43.
How can companies sell the same product under different names and?
Because there are different type of customers and the company can’t reach them the same way. Through advertising, market segmentation and customer services differences – companies can sell what seems to be the same product at different prices. With value based pricing – what the customer is “buying” may be different than what you expect.