Segmented pricing is a pricing strategy in which one or more prices are set for a given product or service, with the difference in prices not based on differences in the company’s costs. The price varies depending on the segment.
Forms of segmented pricing include: 1) Pricing by customer segment (e.g., student discounts); 2) Pricing by product form (e.g., different prices for different packages); 3) Pricing by location (e.g., theater prices); and 4) Pricing by time (e.g., off-season prices).
