Question
Samantha wants to practice price discrimination in her cupcake bakery. Which strategy should Samantha NOT use?
volume discounts for customers who buy large numbers of cupcakes
discounted prices for customers who buy day-old cupcakes
an annual fee for customers who want to carn a
the same price for all consumers for all cupcakes available
volume discounts for customers who buy large numbers of cupcakes
discounted prices for customers who buy day-old cupcakes
an annual fee for customers who want to carn a
the same price for all consumers for all cupcakes available
Ask by Todd Grant. in the United States
Nov 22,2024
Upstudy AI Solution
Tutor-Verified Answer
Answer
Samantha should not use the same price for all consumers for all cupcakes available.
Solution
Sign in to Unlock Answers for Free!
A Learning Platform Trusted by Millions of Real Students and Teachers.
Unlock Answered by UpStudy AI and reviewed by a Professional Tutor
Like
Beyond the Answer
Samantha should steer clear of charging the same price for all consumers for all cupcakes available. This approach eliminates any opportunity for price discrimination, which is all about charging different prices to different customer segments based on their willingness to pay.
Instead, leveraging volume discounts or offering deals on day-old cupcakes can entice customers and maximize her bakery’s revenue potential by appealing to various groups. An annual fee for discounts is also a clever way to ensure customer loyalty while encouraging larger purchases.
