Required Readings
Lecture notes: Smart Pricing to answer this question.
Charging different customers different prices according to their price sensitivity is an essential strategy for many businesses in order to maximize their revenue. To achieve this objective "fences" have to be built to prevent customers moving from one pricing segment to others. In the lecture, we have introduced several differential pricing strategies (please see the list below). For each of the strategies, give an example and explain how the "fences" are built in your examples (Please avoid using the examples I discussed in the lecture).
1. Group Pricing
2. Channel Pricing
3. Regional Pricing
4. Time-Based Differentiation
5. Product Versioning
6. Coupons and Rebates
Article: Quality in Supply Chain Design Smart Pricing