Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
It has eliminated price discrimination entirely.
B
It has increased the ability of firms to implement personalized pricing strategies.
C
It has made price discrimination less effective.
D
It has no impact on price discrimination practices.
Understanding the Answer
Let's break down why this is correct
Answer
Technology has greatly changed how businesses use price discrimination in service industries. Price discrimination means charging different prices to different customers for the same service based on various factors. With technology, companies can collect data about customers' buying habits and preferences. For example, an airline might use software to track when a customer usually books flights and offer them special deals or higher prices based on that information. This helps businesses maximize their profits by charging each customer what they are willing to pay while also making services more accessible to others.
Detailed Explanation
Technology helps companies know more about customers. Other options are incorrect because Some might think technology has stopped price differences; It's a common belief that technology makes price differences less useful.
Key Concepts
price discrimination in service industries
impact of technology on price discrimination
Topic
Understanding Price Discrimination
Difficulty
medium level question
Cognitive Level
understand
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