differential pricing

Differential pricing is a strategy where a business charges different prices for the same product or service, based on various factors. These factors can include the customer's location, purchase quantity, or timing of the purchase. For example, airlines often charge different prices for the same flight depending on how early you buy, or students and seniors might get discounts. The goal is to maximize revenue by adjusting prices to match different customers’ willingness to pay, ensuring the company can attract a broader range of buyers while optimizing profits.