Help: Question on price discrimination!

[bizi]

oh okayyyy thnks.. i do understand now.. so ive to relate the price elasticies wit the price discrimination... but im not reli sure how to asnwer this assgnment in an accurate way..hoho.. btw thnks...~

[Paulene]

some intersting example of price discrimination

Pizaa express: you can ALWAYS 100% of the time get 2 for 1 pizzas at pizza express in the UK. So why do most people pay full price? because they arent that bothered about it. People who are bothered probably wouldnt pay the full retail price, so they go looking for vouchers online. these are readily available so pizza express gains extra customers (albeit making less profit) that they otherwise wouldnt have got.

Its a way of allowing thse more money concious customers to come to pizza express, and at the same time charge more to those who are willing to pay more and cba to find the voucher/print it off.

Starbucks: has an extra small sized coffee that costs less than all the others, but is not printed on any menu. if you make the effort to find out and know about this cheaper coffee size, you can order it and save some money. but most people dont care enough to find out about it, so they happily pay more for the normal menu sizes. Again, those who would normally not go to starbucks due to the price are given an extra option that is 'not open' to other customers.

this isnt classic price discrimination, but still intereting.

Paulene.