Hurdles & Price Discrimination – New Content
One of the goals of differential pricing (or price discrimination) is to discount selectively. Ideally the seller would never discount to a buyer that was prepared to pay full price, only buyers that were focussed on value above all else.
Hurdles play a very important role in a well-rounded strategy of price discrimination. Used properly they effectively separate the customers that are truly focussed on price so that they can take advantage of discounts that will not appeal to those that are less focussed on price, and/or more focussed on other attributes of a particular product or experience.
A definition of hurdles as they relate to pricing, complete with several examples, as been added to the Pricing Glossary section. In addition we have added a case study detailing the very effective use of price hurdles in an email advertisement.