Question

In the research paper Personalized Dynamic Pricing of Limited Inventories by Aydin and Ziya (2007), the authors note that

[I]mplementing personalization [with regard to pricing] to such a full extent may be impractical.

Instead, a seller may want to use a personalization strategy where there is an announced price and single discount level that can possibly be offered to a customer depending on the signal from the customer.

An everyday example of this would be a discount on

a. movie tickets when the customer signals that he or she is single.

b. movie tickets when the customer signals that he or she is a student.

c. Twilight movie tickets when the customer signals that he or she is a Twilight fan.

d. Avengers movie tickets when the customer signals that he or she is a silent-film fan.

e. concessions when the customer signals that he or she is on a diet.

ANS: B DIF: Moderate REF: Price Discrimination at the Movies

Answer

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