Characteristics of consumers
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Certain consumer characteristics make price discrimination more likely. These include consumer ignorance of lower prices from other suppliers, consumer inertia where price differences seem insignificant so they do not change suppliers, and consumer attitude where status leads them to pay higher prices from some firms over others.
Characteristics of consumers
- 1. Characteristics of consumers Certain characteristics of consumers make the practice of price discrimination more likely, these are: 1 Consumer ignorance: Consumers may not be aware that the good or service is available from another supplier at lower price. 2 Consumer inertia: Even if they are aware of its availability at a lower price, consumers may regard the difference in price as insignificant. Therefore, they may be reluctant to change from one supplier to the other. 3 Consumer attitude to the good or services in question: Consumers may be willing to pay a higher price for the good or service supplied by one firm because of a certain status.