Differential pricing is effective mainly when focusing on only one market segment.

Question

Quizplus · Accepted Answer

Differential pricing is effective when a company identifies and targets multiple market segments with different willingness to pay for a product or service. By setting different prices for each segment, the company can maximize its revenue and profitability. Focusing on only one market segment limits the potential benefits of differential pricing.

Differential Pricing Is Effective Mainly When Focusing on Only One