The purchase price for Stata version 12 (statistical software used by many economists) is $895. For users of Stata version 11, the price to upgrade to version 12 is $395. Which of the following statements is (are) TRUE?
A) Stata is using a two-part tariff strategy.
B) Stata is segmenting its market by past purchasing behavior.
C) Stata is practicing first-degree price discrimination by charging different groups different prices.
D) The current users of Stata are less price-sensitive than possible future users.

Question

Quizplus · Accepted Answer

Stata is segmenting its market by past purchasing behavior by offering a lower upgrade price to existing users, which is a form of price discrimination based on consumer history.

The Purchase Price for Stata Version 12 (Statistical Software Used