Selling identical goods to different targeted groups at varied prices is referred to as?

The concept of selling identical goods to different targeted groups at varied prices is known as price discrimination. This pricing strategy allows businesses to maximize their profits by charging different prices based on the willingness or ability of different groups to pay. For example, a company may charge lower prices to students or seniors while charging higher prices to regular adult consumers, all for the same product.

Price discrimination is effective because it captures consumer surplus, allowing businesses to segment the market and tailor prices to various customer demographics. Proper implementation of this strategy can lead to increased revenue without reducing the overall sales volume, as different segments of the market will react differently to pricing.

In contrast, price customization refers to setting personalized prices for individual customers, often based on data and behavioral analysis, while price opacity relates to consumers' inability to easily determine the pricing structure. Price gouging, on the other hand, refers to the practice of setting excessively high prices during emergencies or crisis situations and is considered unethical or illegal in many jurisdictions. Understanding price discrimination helps in recognizing market strategies that businesses employ to optimize their pricing models based on customer behavior and market conditions.