The Role of Differentiated Pricing in Marketing
Posted: Tue Jan 21, 2025 9:41 am
An example of differentiated pricing is the situation with airline tickets. Different people may pay different amounts for the same ticket, depending on the time of purchase, destination, or class of service. Thus, tickets bought in advance may cost much less than those purchased at the last minute.
Differentiated pricing helps companies maximize revenue. For example, if a company sells a product or service at a high price, it can earn more from a small number of customers who are willing to pay more. At the same time, it can attract low-income customers by offering them a lower-than-average price.
This approach allows brands to target different market segments without losing profits. Companies that use differentiated pricing often create more attractive offers for each segment of their target audience.
Historical context
Differential pricing has been around for a long czech republic whatsapp number data time, although its use only became popular in the 20th century with the development of the market and new technologies. Initially, this strategy was used in industries where demand was variable, such as rail and air travel. Here, companies found it profitable to set different prices depending on the time of day, season, or other factors.
With the development of the Internet and digital technologies, the concept of differentiated pricing has acquired new meaning. Online trade has opened up new opportunities for implementing this strategy. Today, many companies, from airlines to online retailers, actively use differentiated pricing in their daily practice.
Differentiated pricing helps companies maximize revenue. For example, if a company sells a product or service at a high price, it can earn more from a small number of customers who are willing to pay more. At the same time, it can attract low-income customers by offering them a lower-than-average price.
This approach allows brands to target different market segments without losing profits. Companies that use differentiated pricing often create more attractive offers for each segment of their target audience.
Historical context
Differential pricing has been around for a long czech republic whatsapp number data time, although its use only became popular in the 20th century with the development of the market and new technologies. Initially, this strategy was used in industries where demand was variable, such as rail and air travel. Here, companies found it profitable to set different prices depending on the time of day, season, or other factors.
With the development of the Internet and digital technologies, the concept of differentiated pricing has acquired new meaning. Online trade has opened up new opportunities for implementing this strategy. Today, many companies, from airlines to online retailers, actively use differentiated pricing in their daily practice.