Hersheypark in pennsylvania mentions the following offer on its web page: "a military discount is available at hersheypark during the regular summer operating schedule off of the regular, junior and senior one day admission. this discount is available to active duty military, reserves, retired military personnel, and members of the national guard." this is price discrimination.

The segment or third degree of price discrimination.

Explanation:

The third degree of price discrimination

Is how prices are divided into segments based on similar needs of those customers that are put into single segments and charged the same price in each segment.

Since it is hard to cater to individual needs of customers the only solution that businesses can do is to try and use segment by selecting those customers that show some similar characteristics and putting them into one segment and charging them the same price.

Examples of segment pricing:

Age: this is one segment that can be used to determine how much a person can be able to spend such as students, children and senior citizens are able to get discounts on diffrent services such as transportation and attractions.

Customer behaviour: in order for business to draw their customers back they my use certain pricing system that can bring back those customers that has been out of the markert for a long time , meaning customers who haven't done any purchase in a long time.

Social factors: This is pricing that looks at social background of people which can determine their affordability, some non profit lawyers use this system to determine their charging system and also some private school use the same segment to price their customer.

Occupation: other businesses use occupation of their customers to determine or reduce their price such as policemen and military personnel as in our example above.

Some businesses do this in order to attract authorities around their area which will eliminate any criminal activities that may surround their businesses.

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