Suppose Dublin Electronics Charges Regular Customers $60 for a Blu-Ray

question 170

Multiple Choice

Suppose Dublin Electronics charges regular customers $60 for a Blu-ray player but allows senior citizens to purchase the same item for $45.Is this likely to be a successful price discriminating strategy?

• A)Yes, firms price discriminate to maximize profits.
• B)No, price discrimination will not be effective because the store cannot prevent senior citizens from buying large quantities of Blu-ray players and reselling them for a profit.
• C)Yes, because senior citizens are likely to have a more elastic demand and therefore will be willing to pay a lower price compared to regular customers.
• D)No, because there are many different brands of Blu-ray players and consumers will shop around.

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Definitions:

Lived Experience

The personal knowledge and insights gained through one's own life events and situations.

Complete Observer

A research role where the observer does not interact with the participants and remains unnoticed.

Observer-as-participant

A role taken by a researcher where they openly interact with study participants while still maintaining a primary focus on observing and collecting data.

Grounded Theory

A systematic methodology in the social sciences involving the construction of theory through the analysis of data.