Supermarkets Pricing Discrimination

Supermarkets pricing discrimination.

Price depending on how the product is presented – For explaining this strategy I will use Fresh salmon sold in Asda. Two small pieces of salmon will be more expensive than same amount of salmon taken out from the entire salmon for the reason that Asda not promoting this type of activity as they expecting customer to buy smaller pieces of salmon.

Own company differential pricing- an example here is in Tesco who have the Metro and Express brands. The Metro and Express brands tend to have prices marginally higher than in the bigger stores. These stores are located usually in busy areas such as high streets where it would be difficult to accommodate the larger stores. They are also located in residential areas which make them similar to off licences stores or convenient stores like Londis and One Stop. They tend to remain open longer on Sundays or Public holidays where by law the bigger stores are shut.