Individual Price Discrimination Is Used When

question 87

Multiple Choice

Individual price discrimination is used when

• A)firms are dealing with individual consumers, such as in a line at the coffee shop.
• B)firms cannot easily determine consumers' reservation prices.
• C)firms are selling to non-local buyers.
• D)salespeople are in a difficult industry, such as auto sales.

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Definitions:

Lifetime Profitability

The total net profit a company expects to earn over the entirety of its business relationship with a customer.

Consumer Needs

The desires, requirements, or necessities that consumers feel compelled to satisfy, driving their purchasing decisions.

Quick Energy

Fast-acting energy sources, often in the form of food or beverages, that provide immediate vitality or stamina.

Supply Chain Management

The administration of goods and services circulation, which includes the transfer and storage of raw materials, inventory in progress, and completed products from the beginning point to the end-use point.