Janie, a farmer, sells a dozen ears of corn to her neighbor for $1/dozen. She sells a dozen ears of corn to the small market down the street for $.75/dozen. She sells corn to the chain grocery store in town for $.50/dozen. Janie is using:________.
a. differential pricing
b. discriminatory pricing
c. price skimming
d. illegal pricing

Respuesta :

Answer:

a. Differential Pricing

Explanation:

As Janie is a farmer, sells a dozen ears of corn to her neighbor for $1/dozen. She sells a dozen ears of corn to the small market down the street for $.75/dozen. She sells corn to the chain grocery store in town for $.50/dozen. Janie is using differential pricing. In this pricing strategy different price is charged from different customers. The main logic behind is to serve all the customers in the best possible way while maximizing the profits as well. It is used when the products are seasonal and the customers are present at different locations, therefore, we charge different prices on the base of their location as well.