Reference no: EM132870466

This week we cover decision making related to pricing strategy. We often think of "Price" in terms of our most common experience - prices we pay for goods and services. However, pricing strategy is much more than setting a price.

Mohammed, R. (2018) article expounds on the marketing and pricing strategy of market segmentation and pricing products/services based on segmentation of Good , Better and Best for delivering value to customers. In the light of all your learning this week, step back and Assess the implications of this strategy and how this approach can assist in delivering enhanced "value Exchange" (Smith, T. J. (2011)).

How does price discrimination (direct indirect) fit into the implementation of this strategy.

Discuss the challenges and risks to implementing this strategy.

Additionally, for each situation described below, discuss the nature of the price discrimination (whether it is direct or indirect price discrimination), and substantiate your conclusions.

Higher interest rates on car loans for borrowers with lower credit scores

Charging ethnic minorities (or red lining) higher rates on mortgages and mortgage refinance

Kohl's retailer offering discounts for early morning shoppers

Charging higher rates on business loans

Volume discounts and/or benefits (example free shipping)

Charging higher rates on mortgage related financing for borrowers in a certain zip code.

Additional business illustrations of price discrimination drawn from your experience are most welcome.

Also, is price discrimination generally illegal? In the above list, which forms of price discrimination are illegal?

Is price discrimination an ethical strategy?