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When looking at a firm's behavior, you know it is engaging in price discrimination when it:__________ a. charges a different price to different customers that is not reflective of the firm's costs. b.
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23 votes
When looking at a firm's behavior, you know it is engaging in price discrimination when it:__________

a. charges a different price to different customers that is not reflective of the firm's costs.
b. charges customers more than they would prefer to pay.
c. asks about personal information such as race, gender, and sexual orientation before offering services.
d. does not accept payment with a smartphon

User Rayhan
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1 Answer

15 votes
15 votes

Answer:

a. charges a different price to different customers that is not reflective of the firm's costs.

Step-by-step explanation:

The price discrimination strategy occurs when an organization charges a different price to different customers that does not reflect the company's costs, that is, the company divides its potential customers into groups, usually based on customer perceptions and characteristics and demographic data to evaluate which group of customers is willing to pay more or less for a particular product or service.

This is a strategy that can be favorable for companies to charge a maximum price for their product knowing that it will be accepted, but it is effective in large companies that have a high position in the market.

User JoannaFalkowska
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