View Single Post
Old 12-29-2007, 03:49 AM  
ichauch
Confirmed User
 
Join Date: Dec 2005
Posts: 463
Simple Economics

Every freshman can tell you about price differentiation, yet I see only few companies which are using this concept. Yes, they introduced trial memberships, but what about geographic differentiation?
It seems most companies target the USA and Europe, while not giving any attention to other markets.

The concept of price differentiation is simple. You basically charge different prices to different group of customers for more or less the same product.
Read about it here:
http://tutor2u.net/economics/revisio...imination.html

You can easily prevent the "consumer switching" that is mentioned in the article with an IP filter for your site.
And at least the Asian markets can be safely targeted with this method, because of the language barrier. The Asian markets are pretty isolated - yet only very few companies are targeting them.
__________________
ichauch is offline   Share thread on Digg Share thread on Twitter Share thread on Reddit Share thread on Facebook Reply With Quote