Price Segmentation

Price segmentation is a marketing strategy that involves charging different prices for the same product or service based on various factors like customer demographics, purchasing behavior, or different market segments. For example, airlines might charge higher prices for last-minute bookings compared to those made in advance or offer discounts for students and seniors. This approach allows businesses to maximize revenue by catering to different willingness-to-pay levels among customers, ensuring that they attract a broader audience while optimizing their profit margins.