Price Discrimination

Price Discrimination

GM wants to run an innovative promotion to sell more cars. They want to price discriminate, since their economic consultant suggested they look into it. Which of the following would make more sense if the goal was to make more money from price discrimination?

A. Give the $1000 discount to people who live within 10 miles of your dealership since they are more familiar with your company.

Price Discrimination

B. Give a $1000 discount to people who already own a GM car, thereby rewarding customer loyalty.

C. Give the $1000 discount to people who do not currently drive GM cars.

D. Give $1000 discount to all people who come in an buy a new GM car

E. None of these are price discrimination strategies

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