price discrimination
TRANSCRIPT
presents
Price discrimination or price differentiation is a pricing strategy where identical or largely similar goods or services are transacted at different prices by the same provider indifferent markets or territories. Price differentiation is distinguished from product differentiation by the more substantial difference in production cost for the differently priced products involved in the latter strategy.
PD on Theatre
Factors taken in to consideration
• 3 companies
• Same film
• One ticket
• At different
Monday to Thursday price of ticket before 10:00am
0
20
40
60
80
100
120
140
PVR INOX CINEMAX
GOLD
NORMAL
During Monday to Thursday After 4:00 pm
0
50
100
150
200
250
PVR INOX CINEMAX
Series 1
Series 2
During to Friday to Saturdayprice of ticket after 4:00pm
0
50
100
150
200
250
300
350
400
450
PVR INOX CINEMAX
GOLD
NORMAL
Price discrimination under dairy products
60
4030
50
Amul Chocolate Ice cream (Rs.)
Maharahtra Gujarat
Goa Other States
Price Discrimination Examples:-
42
3628
30
Vadilal chocolate icecrea
(RS)
Maharashtra Goa
Delhi Other States
From The Above Pie Charts Price Discrimination Can Be Easily
Studied. There Is A Comparison Made Between Two Leading
Companies Of India regarding the diary products offered by them
to people at varying price, quality being almost same. There is
state wise price discrimination observed.
Amul Diary Products(Rs.)
35
30
20
15
Maharashtra Delhi
West Bengal Kerala
Mother Diary Products (Rs.)
26
35
15
24
U.P Punjab Kerala Maharahtra
Price discriminationunder airline industry
Conditions taken into
consideration
• Time of booking
• Charges of extra luggage
• Cancellation fee and date changing fee
Time of bookings. There is no hard and fast rule, but if you buy a ticket several months in advance it tends to be cheaper
0
2000
4000
6000
8000
10000
12000
march April
economy
business class
Pri
ce
data for flight between Mumbai-Delhi of same airliner
Charges for extras luggage. All budget airlines like indigo, air-go, spicejet has become expert at charging for extras for luggage above maximum allowance per person then non budget airline like jet airways and Indian airlines.
data
0
50
100
150
200
250
300
350
400
450
500 500
300
indigo (budget airline) jet airways (non budget airline)
Data as per Indiandomestic luggage allowance I.eabove 15KG p/a
Cancellation or date changing fee: some air tickets are sold cheaply then other airline but in case of cancellation or date changing issue this airlines charge more then other airlines
5000
8000
2500
2000
20001500
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Budget airline (indigo) Non budget airline(jet airways)
ticket fare date change fee refund fee
data as per 1month prior booking between Mumbai-Delhi
economy class
PRICE DISCRIMINATIONNORMALLY DISCOUNT
STORE’S MAGGI Sugar 2kg Dawat basmati rice -5kg
D-MART RS. 3 OFF RS.5 OFF RS.3 OFF
BIG BAAZAR RS.2 OFF RS .3 OFF RS.2 OFF
METRO RS .5 OFF RS.9 OFF RS.6 OFFThe product has same quantity and has same quality but they has price differences
at different different retail shop
FESTIVE SESAON DISCOUNT STORES MAGGI Sugar 2kg Dawat basmati
rice -5kg
D-MART RS.6 OFF RS .9 OFF RS.5OFF
BIG BAAZAR RS.5 OFF RS.6 OFF RS.4 OFF
METRO RS.10 OFF RS.12 OFF RS.11 OFF
PRICE DISCRIMINATION ON QUANTITY AND QUALITY AT DIFFERENT MARKET
NORMALLY DISCOUNT
SEASONAL DISCOUNT
02468
101214
D-MART BIG BAAZAR METRO
MAGGI
AMUL BUTTER
AMUL CHEESE
0
5
10
D-MART BIG BAAZAR METRO
MAGGI
AMUL BUTTER
AMUL CHEESE
BUS TRANSPORTcase-study
BUS JOURNEY-PRICE DISCRIMINATION
Before coming to the main topic , we need to have some assumptions
• Here we are commencing a journey from Mumbai to Pune
• The data is obtained from Redbus.in
• The prices are as on 19th February 2015
• The values are in Rupees
BUS NAME A/C NON-A/C
Neeta 350 300
VOLVO 400 350
VRL 400 325
Seabird 500 400
Price discrimination under E-Commerce in
Electronics
0
5000
10000
15000
20000
25000
flipkart amazon snapdeal
Mobile
sony xperia c3 samsung grand 2
The data assures 2-3days delivery and 30 days return policy with COD available
The given graph shows price discrimination
between different E-business sites ,where
price is different in each site.
37000
38000
39000
40000
41000
42000
43000
44000
45000
46000
flikart amozon snapdeal
price
The data assures 5 -6 days delivery and 30days return policy with COD available.
The given data shows different price of
LED TV under 3 different E-business
sites
PRICE DISCRIMINATION UNDER AGE BASED
AMMUSEMENT PARK TICKET RATE
CHILD ADULT SR.CITIZEN
ESSEL WORLD RS.490 RS.790 RS.290
WATER KINGDOM RS.590 RS.890 RS.290
COMBINED PASS RS.990 RS.1290 RS.390(ESSEL WORLD + WATER KINGDOM)
PASSPORT NEXT RS.1290 RS.1490
CHILDREN UNDER HEIGHT 3’3” GET FREE ENTRY!
Price Discrimination under Pharmaceuticals
Price Discrimination• Same drug given by two different company
• Other Example
Company Content Quantity Price
nurofen 200mg Ibuprofencuprofen
24 tablets 277.43
Seton healthcare 200mg Ibuprofencuprofen
24 tablets 105.60
company Product name qty Price
lemsip Paracetamol(Pankiller)
5 sachets of 100 mg
240.00
AAH Paracetamol(Pankiller)
5 sachets of 100 mg
172.80