Member and Employee Cards:
An example of price discrimination is the use of member and employee cards, to guarantee a discounted price for the firms’ products.
Employee cards are distributed to current employees in the certain firm or retail store, these are personal benefits as the employees get a reduced price for a product (mostly 10%-20% off), where the normal consumer would pay full Recommended Retail Price (RRP).
Membership cards are issued to those who are members of certain stores, such as the American wholesale chain Costco. Even though members are meant to be in a certain criteria of work or income, members are able to buy products in the store, or buy products that are relatively cheaper than the RRP.
It can be argued that being members or employees have its advantages in the market, whilst the “average Joe” is discriminated against paying full price for the same product. Only thing I can say is be a member of these stores or find a job at a high street retail chain.
An example of price discrimination is the use of member and employee cards, to guarantee a discounted price for the firms’ products.
Employee cards are distributed to current employees in the certain firm or retail store, these are personal benefits as the employees get a reduced price for a product (mostly 10%-20% off), where the normal consumer would pay full Recommended Retail Price (RRP).
Membership cards are issued to those who are members of certain stores, such as the American wholesale chain Costco. Even though members are meant to be in a certain criteria of work or income, members are able to buy products in the store, or buy products that are relatively cheaper than the RRP.
It can be argued that being members or employees have its advantages in the market, whilst the “average Joe” is discriminated against paying full price for the same product. Only thing I can say is be a member of these stores or find a job at a high street retail chain.
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