Market Segmentation Pricing

Market segmentation pricing is a strategy where a company sets different prices for the same product based on specific customer groups or market segments. These segments can be based on factors like age, location, income level, or buying behavior. For example, a software company might charge students less than businesses for the same program. This approach allows companies to maximize revenue by capturing more customers willing to pay different amounts, and it helps tailor pricing strategies to meet the unique needs and willingness to pay of each segment.