In one of its least favourite actions,Amazon.com was caught fiddling with its price tags.Avid Blu-Ray shoppers found that the online store was offering different customers different prices for the same Blu-Ray,and complained vociferously.Amazon was caught red-handed.It was,company officials admitted,trying to see how much it could charge for an item before shoppers balked.No matter what the reasoning behind it,Amazon.com was using:
A)horizontal price fixing.
B)resale price maintenance.
C)price discrimination.
D)predatory pricing.

Question

Quizplus · Accepted Answer

Price discrimination refers to selling the same product or service at different prices to different consumers. Amazon was offering different prices for the same Blu-Ray to different customers, which is a clear example of price discrimination. The company was trying to test how much it could charge before customers stopped buying, which is a common practice among online retailers. However, this practice can lead to customer dissatisfaction and can harm the company's reputation in the long run.

In One of Its Least Favourite Actions,Amazon