Describe the four methods of implementing differential pricing

What will be an ideal response?

a. Direct price discrimination – maximizes products' profits by charging each market segment the price that maximizes profits from that segment because of different price elasticities of demand.
b. Second-market discounting – with this policy, you sell the extra production at a discount to a market separate from the main market.
c. Periodic discounting – price varies over time. It is appropriate when some customers are willing to pay a higher price to have the product or service during a particular time period.
d. Flat-rate versus variable-rate pricing – allows customers to choose the option that best suits their level of usage.