The document discusses different types of price discrimination, including first degree, second degree, and third degree price discrimination. It then discusses how price discrimination is used in e-retail, with some online retailers changing prices frequently and dramatically based on factors like user location through a practice called variable pricing. Some websites have faced criticism for using variable prices in ways that are not transparent to users.

1. PRICE DISCRIMINATION IN E-RETAIL
SERVICE MARKETING
PRESENTED BY
M INDRAJA
15331E0075

2. • Price Discrimination
• Types Of Price Discrimination
1) First Degree
2) Second Degree
3) Third Degree
• Price Discrimination In E-Retail
CONTENTS

3. PRICE DISCRIMINATION
The action of selling the same product at different prices to
different buyers, in order to maximize sales and profits.
EXAMPLE: Airline travel

4. Types of Price Discrimination
• First Degree Price Discrimination
• Second Degree Price Discrimination
• Third Degree Price Discrimination

5. First Degree Price Discrimination
First-degree discrimination, or perfect price discrimination,
occurs when a company charges the maximum possible price
for each unit consumed. This type of discrimination is rarely
practiced.

6. Second Degree Price Discrimination
Second-degree price discrimination occurs when a company
charges a different price for different quantities consumed,
such as quantity discounts on bulk purchases.
EXAMPLE: Electricity

7. Third Degree Price Discrimination
This involves charging a different price to different groups of
consumers. These groups of consumers can be identified by
particular characteristics such as age, sex, location..
EXAMPLE: Time of Purchase, Age discounts

8. PRICE DISCRIMINATION IN E-RETAIL
Online price discrimination has attracted immense popularity and heat in the
last few months when the Wall Street Journal revealed some websites that
used variable prices based on users’ location and other statistics.

9. Some online retailers have been known to change product
prices frequently and dramatically, a method called
variable pricing.

11. BIBILIOGRAPHY
• http://www.investopedia.com/terms/p/price_discrimination.asp#ixzz4Pzb2yMW0
• http://www.pressherald.com/2014/11/05/price-discrimination-online-whats-behind-your-price/
• https://econsultancy.com/blog/62699-online-price-discrimination-a-surprising-reality-in-ecommerce/
• https://www.google.co.in/search?newwindow=1&biw=1440&bih=745&tbm=isch&q=freecharge+coup
ons&sa=X&ved=0ahUKEwiuvKWQ0ajQAhXGQY8KHdBPAZ4QhyYIHg#imgrc=KJfj9CCpaUODiM%
3A

12. THANK YOU