Segment Pricing

In some industries special classes of customers within a target market are offered pricing that differs from the rest of the market. The main reasons for doing this include: building future demand by appealing to new or younger customers; improving the brand’s image as being sensitive to customer’s needs; and rewarding long time customers with price breaks.

For instance, many companies including movie theaters, fitness facilities and pharmaceutical firms offer lower prices to senior citizens. Some marketers offer non-profit customers lower prices compared to that charged to for-profit firms. Other industries may offer lower prices to students or children.

Another example used by service firms is to offer pricing differences based on convenience and comfort enjoyed by customers when experiencing the service such as seat location at a sporting or entertainment event.