Question

When compared to a multiple products, multiple market segments strategy, a one product, multiple market segment strategy Group of answer choices is a much more effective means of meeting consumers' individual needs. creates greater savings in production costs. is a more effective way of meeting organizational objectives. is more profitable since a firm can charge the new segments higher prices without changing the product. has significantly higher distribution costs.

Answer 1

Answer:

is more profitable since a firm can charge the new segments higher prices without changing the product.

Explanation:

When a single price has multiple segments and when product, it is an example of price discrimination

Price discrimination is when the same product is sold at different prices to customers in different markets

types of price discrimination

1. first degree price discrimination : here sellers charge each consumer at their willingness to pay in order to eliminate consumer surplus.

2. second degree price discrimination : here firms offer different prices depending on the quantity purchased. e.g. giving discounts for bulk purchases.  

3, third degree price discrimination : firms charge different prices to different groups of customers. e.g. having a certain price for senior citizens, students  

Price discrimination benefits firms because firms can earn more profit since they charge different prices for the same single product compared with multiple products