Posted in Marketing and Strategy Terms, Total Reads: 1245
Definition: Differential Pricing
Differential pricing is a type of pricing strategy in which a product or a service is charged differently based on various parameters like the customer, characteristics the quantity of product, different circumstances or mode used etc. It follows the key pricing principle that some customers are willing to pay more than others for a product as they may value the product more. The end result of a successful differential pricing is maximization of the profit by selling more products at maximum price a customer is willing to pay.