Geographic Price Discrimination As A Retail Strategy

Role of the geodemographic market profile

scar Gonzlez-Benito and Javier Gonzlez-Benito
Universidad de Salamanca

Introduction

A price discrimination policy consists of setting different prices for the same product according to the customers, amounts purchased, shopping situations, etc. Its strategic rationality is based on adapting the principle of segmentation to the price dimension: the definition of prices akin to the circumstances of each market in order to optimise a firm's performance.