Differential Pricing
Differential pricing is a strategy where a product or service has varying prices based on customer type or timing. For instance, a zoo might charge Rs. 10 for local visitors and Rs. 100 for foreigners, or a sale price might rise as the deadline nears. Known also as discriminatory or variable pricing, it tailors costs to maximize revenue or target specific groups. This approach leverages differences in willingness to pay, market conditions, or urgency, making it a flexible tool for businesses to optimize profits.
Related Terms
Abc Wave Theory
The ABC Wave Theory, also known as Elliott Wave Theory, is a method used to...
Exponential Moving Average
Exponential Moving Average (EMA) is a technical indicator used in trading to follow price trends...
Depository Participant
A depository participant (DP) is a financial entity linking investors to depositories like CDSL or...
Equilibrium Price
Equilibrium price occurs when supply matches demand perfectly, balancing the market. At this point, buyers...
Margin Trading
Margin trading is a strategy where traders borrow funds from a broker to amplify their...
Butterfly Spread
A butterfly spread is an options trading strategy that merges bull and bear spreads to...
