Zephyr Appliances sells the same stove to customers at two different prices. The higher price is for buyers who get top-notch customer service. The lower price is for those who forgo customer service. This is an example of what kind of price discrimination?
A)The hurdle method
B)Group pricing
C)Segmentation valuation
D)Quantity discounts

Question

Quizplus · Accepted Answer

This is an example of the hurdle method of price discrimination, where customers who are willing to pay more for additional services or benefits are charged a higher price. The hurdle in this case is the decision to opt for customer service or not.

Zephyr Appliances Sells the Same Stove to Customers at Two