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Price Discrimination

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Business Glossary

Definitions for: price discrimination
Dictionary of Marketing Terms
price discrimination

charging a different price for a different product or to a different buyer without any true cost differential to justify the different price. An agreement to charge a better price for the same product to one buyer versus another may constitute a violation of antitrust laws. A marketer may charge more for one model of a product than for another in order to add perceived value to the product. For example, makers of designer jeans charge a premium price for a product that costs no more to manufacture than no-name jeans.

Copyright c 2000, 1994, 1987 by Barron's Educational Series, Inc. Reprinted by arrangement with Publisher.

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