Question

The Royal Ontario Museum has different admission prices for students, adults, and seniors. All three groups are entitled to the same services. This form of pricing is called ________

a. Tiered pricing
b. Discriminatory pricing
c. Dynamic pricing
d. Price differentiation

Answer 1

The Royal Ontario Museum's pricing strategy, where different groups are charged different prices for the same service, is called price differentiation or discriminatory pricing.

Step-by-step explanation:

The form of pricing in question, where different prices are charged to students, adults, and seniors for the same services, is known as price differentiation. Price differentiation, or discriminatory pricing, occurs when a company charges different prices to different groups of customers for the same product or service. The intention is to maximize revenue based on the willingness to pay of different market segments. In the context of the Royal Ontario Museum, these groups likely reflect perceived differences in price sensitivity or available income, prompting a tiered pricing strategy tailored to each segment.