price discrimination

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