Price discrimination
Price discrimination is when a company sells a product or service at two or more prices that do not reflect a proportional difference in costs.
Definition
According to Marketing Management by Keller and Kotler (15th edition),
- Price discrimination. A company sells a product or service at two or more prices that do not reflect a proportional difference in costs.
According to Cost Accounting by Horngren, Datar, Rajan (14th edition),
- Price discrimination. Practice of charging different customers different prices for the same product or service.