Discussion 6 - Why you think this price discrimination scheme

Discussion 6.1

Instructions

Please discuss:

1. Why you think this price discrimination scheme is effective?

2. What role is Amazon playing in defeating the price discrimination scheme used by the author?

See the article below:

From the author's blog (Links to an external site.)

Amazon has made it much easier to defeat international price discrimination schemes, (like the one used by the authors of this book.)

M6: Discussion 6.2

Instructions

Provide an original post and 2 feedback posts to other students' responses.

A manufacturer of microwaves has discovered that male shoppers, on average, have lower values for microwave ovens than female shoppers. Additionally, male shoppers attribute almost no extra value to an auto-defrost feature, while female shoppers, on average, value the auto-defrost feature. There is little additional cost to incorporating an auto-defrost feature. The manufacturer is considering introducing two different models. The manufacturer has determined that men value a simple microwave at $70 and one with auto-defrost at $80, while women value a simple microwave at $80 and one with auto-defrost at $150.

1. If there is an equal number of men and women, what pricing strategy will yield the greatest revenue?

2. What if women comprise the bulk of microwave shoppers?