Hurdles & Price Discrimination – New Content

Oct 13, 2014

New content explaining the concept of hurdles and their important place in a comprehensive differential pricing/price discrimination strategy has been added.

 

One of the goals of differential pricing (or price discrimination) is to discount selectively. Ideally the seller would never discount to a buyer that was prepared to pay full price, only buyers that were focussed on value above all else.

Hurdles play a very important role in a well-rounded strategy of price discrimination. Used properly they effectively separate the customers that are truly focussed on price so that they can take advantage of discounts that will not appeal to those that are less focussed on price, and/or more focussed on other attributes of a particular product or experience.

A definition of hurdles as they relate to pricing, complete with several examples, as been added to the Pricing Glossary section. In addition we have added a case study detailing the very effective use of price hurdles in an email advertisement.



Category: Examples

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