Pricing Strategies

Price gouging is where the seller increases the prices of their goods or services to a level considered unreasonable and unfair.

First-degree price discrimination is where a business charges each customer the maximum they are willing to pay.

Price Discrimination is a strategy businesses use to maximise revenue. Sellers charge customers different prices based on the maximum they think a customer is willing to pay.

Where prices actively fluctuate based on current demand.

When business charge customers different prices based on their demographic or other characteristic.

Second degree price discrimination is where a firm sells at different prices based on quantity. This may include offers such as buy two, get one free, or 20 percent off when you buy six.