The idea
It works only with some pricing power, a way to tell customers apart or let them sort themselves, and a way to stop resale. Personal offers risk comparison, menus risk cannibalisation, and group prices risk resale and fairness complaints. Customers accept differences with visible reasons, such as students or off-peak hours, and reject differences that exploit a lack of choice.
Use it thoughtfully
- Give every price difference a reason customers accept.
- Check regulators' rules before group or area pricing.
- Close resale gaps between groups.
An example
ILLUSTRATIVE EXAMPLE: A student pack in Indonesia needs a student ID check at activation, so agents cannot resell it to everyone.
A question to try
Which of your price differences would a customer call fair, and which would they call exploitation?
A useful framework is a starting point, not a guarantee. Effects vary with the audience, product and situation. Use truthful evidence, respect customer choice, and test the result.