Customers and pricing
Price discrimination
Charging different customers different prices for the same product.
Facts checked against sources onWhat does Price discrimination mean?
Price discrimination means charging different prices to different customers for the same product, based on what each group is willing to pay: student discounts, off-peak fares and early-booking prices are examples. It needs a way to separate the groups, and the rules on what is allowed differ by country and industry.
Where does it come up in case interview prep?
- How luxury and fashion make moneyLesson in Luxury and fashion
- Software and SaaS: players, trends, regulation, and how to crack the casesLesson in Software and SaaS
- How sports and live events make money, and who does whatLesson in Sports and live events
- Sports and events economics: wages, spending rules, media rights, stadiums and concertsLesson in Sports and live events
- Sports and live events players, trends 2024 to 2026, and how to crack the casesLesson in Sports and live events
Related terms
- Value-based pricingSetting the price from what the product is worth to the customer.
- BundlingSelling several products together for one price.
- TAM, SAM and SOMTotal market, the part you can serve, and the part you can win.
- Market shareOur sales as a share of total market sales.
- Relative market shareOur share divided by the largest competitor's share.
- Penetration rateThe share of potential customers who already use the product.
- Share of walletOur share of what one customer spends in the category.
- ARPU (average revenue per user)Revenue divided by the average number of users.
Learn it in context
See Price discrimination at work in a lesson from Luxury and fashion, with checks as you go.
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