Sample Essay
The discrimination pricing strategy that is employed by UK Rail in its cumulative pricing strategy is the multi market price discrimination. More specifically the pricing strategy involves selling the same service to the different markets at different fares (Farham, 2005). The UK rail makes use of non-anonymous price discrimination in this category. Non-anonymous price discrimination involves charging of different prices by the company from the different markets that exist for the product or service (Armstrong, 2006). When it comes to the train travel industry such pricing is applied to the senior citizens, the travel fares for children, as well as the differentiated travel fares for the students and those aged younger that 16 as in the case of UK Rail. Under such a pricing strategy higher prices are charged for fares to those customers/ markets that have a price inelastic demand for the tickets while lowers fares are charged to the market that have a elastic demand for the travel fares.
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