Sunday, January 25, 2015
Gracia Gilreath, Chapter 1, Question 2
The issue that most directly affects my life is price discrimination, which is is when a firm sells their products at different prices in different places. This is evident when my family and I are shopping for food or clothes. We tend to shop for groceries at Cub instead of Kowalski's or Lund's because we know that we can get the exact same product for a better price at Cub. We know this because of experimenting with buying groceries from all three places and in the end, we pay less for groceries at Cub, even though we purchase the same items at all three grocers. Likewise, when shopping for clothes, I tend to stay away from the leading (more expensive) product stores and look for deals at cheaper product stores, such as, Marshals. This is because I have found that I can find the same exact sweater for a much better price at Marshals then at Gap. By paying less for my sweater I am able to save money, which can go towards something else that I may want in the future.
Subscribe to:
Post Comments (Atom)
This comment has been removed by the author.
ReplyDeleteThis comment has been removed by the author.
DeleteI agree with you on your comment with the groceries. Especially me someone who has to budget money why would you pay more for the same product. Well done Gracia always look out to manage your money ;)
ReplyDeleteI agree with Gracia that this section can relate to the majority of people, especially from the stand point of buying food since everyone needs it. But I don't think the Marshals example works similar to what Derik said in class that the product should be from the same place, like the example from the book of the plane tickets.
ReplyDeleteI wonder if this is simply just an example of a firm trying to attract more business by lower prices rather than a discrimination? In my understanding for there to be a discrimination there must be two types of customers being appealed to. Like the airline example between voluntary vacationers and business people that need to fly somewhere on short notice. The firm charges higher to those who don't have the option to shop around for lower prices.
ReplyDelete