A local boutique is having a sale on sweaters, but customers are not aware of the sale until they are already in the store. In other words, there is no advertising of the sale other than signs in the back of the store that cannot be seen from the outside. All sweaters are marked as 15% off. Is this price discrimination?
Yes
No

Question

23-11-2022
Mathematics

Answered

A local boutique is having a sale on sweaters, but customers are not aware of the sale until they are already in the store. In other words, there is no advertising of the sale other than signs in the back of the store that cannot be seen from the outside. All sweaters are marked as 15% off. Is this price discrimination?
Yes
No

Answer :

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qwcricket qwcricket · Answer 1 · 2022-11-28T08:04:16-05:00

No, there is no price discrimination in the given question

Price discrimination is a marketing strategy where a firm levies its customers variously for a similar commodity based on the standards they have set. It is offering customers various products at various price points based on their purchasing power and demographics.

Since the retailer does not charge different prices for various products, there is no price discrimination in the given question. It cannot be argued that a local boutique owner is engaging in price discrimination if they offer a discount to a customer who is unaware of it without asking them first. Additionally, it is no priced discrimination if the shop owner does not give more than a 15% discount or any incentives for purchasing in bulk.

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