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Sometimes I wonder....
Ya, you got the title right. Sometimes I wonder, How each and every one of us is different. Everyone has their own individuality. we have a small tea shop outside our college. We call it Anna's shop. Yesterday I was sitting at Anna's shop with a cup of tea in one hand and a cigarette in other. Suddenly I saw a Airplane flying up in the sky. And suddenly this thought strikes into my mind. "There are people traveling through that plane. Some of them might be happy, some of them might be sad, Some of them with absolutely no reaction, some of them might be going for a business purpose, some of them might be going to meet their loved ones and so on......
Everybody looks happy from outside, but deep inside no ones happy. Everybody wants something more. You are unemployed..You need a job. You get a job....You need a good profile or a good package. Human being is such a creature that he is never satisfied, no matter how much you give it to him, he wants more. With the tea still in my hand, another thought passed my mind. Is it so difficult to be happy? I think the strive to get more and more makes us all unhappy. The other day I was watching this movie "Gods must be crazy". The people living in forest were so happy and peaceful. Why? Because they did not understand the human created concept of "Ownership", to them nothing is MINE or YOURS. When we start owning things, it gets complicated, we lose our mental peace, we stress out in owning things. Starting from owning a small toy as a kid to writing your WILL on your death bed. We always try to own things.
This could be one of the perspective at looking things, but you can give a thought over it. I will bring out some other perspectives as well, but in my next post. keep watching :)
Everybody looks happy from outside, but deep inside no ones happy. Everybody wants something more. You are unemployed..You need a job. You get a job....You need a good profile or a good package. Human being is such a creature that he is never satisfied, no matter how much you give it to him, he wants more. With the tea still in my hand, another thought passed my mind. Is it so difficult to be happy? I think the strive to get more and more makes us all unhappy. The other day I was watching this movie "Gods must be crazy". The people living in forest were so happy and peaceful. Why? Because they did not understand the human created concept of "Ownership", to them nothing is MINE or YOURS. When we start owning things, it gets complicated, we lose our mental peace, we stress out in owning things. Starting from owning a small toy as a kid to writing your WILL on your death bed. We always try to own things.
This could be one of the perspective at looking things, but you can give a thought over it. I will bring out some other perspectives as well, but in my next post. keep watching :)
Market research project
The lifestyle of people in India is changing at an exponential rate. Thanks to the internet and Information technology. I still remember as a kid, I used to get a new pair of trouser, was at the time of Diwali. Today you don't have to wait for an occasion to buy new clothes. You just go and get it. Similar is the case with electronic gadgets. Decade ago a mobile phone was an luxury item, today it is a necessity. Traveling by air was only for the rich class, but not now. Things have changed rapidly Since the past decade.
The things have changed so rapidly that we are conducting a survey to understand the preference of automobiles used by the working women. To arrive at the better understanding on the issue in hand, please fill up the form provided below.
The things have changed so rapidly that we are conducting a survey to understand the preference of automobiles used by the working women. To arrive at the better understanding on the issue in hand, please fill up the form provided below.
This research will help us understand better the conveyance needs of working women. This research is in collaboration with INDIA TODAY and as a part of academic curriculum.
Price Discrimination
Consider a product X, Say a Mobile Phone. Now a vendor sells a mobile phone for Rs. 10000 to one customer and sells the same model mobile phone for Rs. 12000 to another customer, then the vendor is Price discriminating.
Further it can be differentiated based on various factors, such as
1. Charge based on affordability
2. Quantity discount
3. Spatial differentiation
4. Price Skimming
5. Bundling
6. Peak load pricing
Let us discuss these in details:
1. Charge based on affordability
There are different people with different purchasing powers. Some can afford things some cannot. That is the reason why we find variety of goods available in the market for different prices. Let me consider a case of a doctor. A patients comes to him in a posh Mercedes for consultation, he charges him Rs. 1000. Another patient comes to him, who is a middle class person, he charges Rs. 500 from him. In this case the doctor is Price Discriminating.
2. Quantity Discount
You go to a local xerox shop for xeroxing your class notes. You see a banner there, "Re.1/page and 60 paise/page for more than 100 copies" in this case the shopkeeper is price discriminating.
Whenever we buy in bulk the price is usually less than the individual retail price. This is known as Price Discriminating based on Quantity discounts.
3. Spatial Differentiation
In this type of Price Discrimination, the price of the product will change from region to region, i.e based on geographic location. An Apple iPod shuffle will be priced differently in India then in US or UK. There could be various reasons for this change in price like currency rates, taxes, transportation cost etc. but the point here is that for the same product the prices are different in different countries. This is known as Spatial Price discrimination.
4. Price skimming
Whenever a new product is launched in the market, it is usually priced high. The reason behind this is that the company wants to recover as many revenue as possible in the early stages of the product. Now according to Rogers Adoption/ innovation curve, the innovators and the early adopters will go for the product because they believe in exclusivity. So price is not an issue for them. After few months of release of the product the prices tends to come down and the same product is available at a cheaper price, Here again there is Price discrimination. i.e same product, different prices.
5. Bundling
Suppose I go to a restaurant to have a Burger which will cost me Rs. 20. A coke will cost me Rs. 12. Now the waiter tells me about the new offer there. The offer is.. If I order a burger with coke I will get the coke for Rs. 10 instead of Rs. 12 if I would have taken it separately. So I will go with the offer. The ultimate result is that I intended to spent Rs. 20 on the burger but I ended up spending Rs. 30. Here again there is price discrimination. For the coke I paid Rs. 10 instead Rs. 12. The advantage of bundling is that is generates more revenue to the company.
6. Peak Load Pricing
You come across this kind of price discrimination regularly. Take for example you are going to Goa for vacation. Now the tariff of hotel room will vary depending upon which month of the year you visit Goa. June, July is off season. In this period you will get a decent room for Rs. 500, but the same room in the month of Dec, Jan will cost you minimum of Rs. 1200-1500. Again there is price discrimination here based on peak season.
Another example could be of electricity rates. The rates/unit of electricity will be different for residential, commercial and industrial usage. Also the rates/unit for industrial usage will be different during the day time and the night time. The rates are less during the night time for the industries. Now here again the product is same "Electricity" but the prices are different.
Now this was about Price discrimination and its different classification. There could be many more ways in which we can classify Price discrimination.
Hope this will benefit you all.
Further it can be differentiated based on various factors, such as
1. Charge based on affordability
2. Quantity discount
3. Spatial differentiation
4. Price Skimming
5. Bundling
6. Peak load pricing
Let us discuss these in details:
1. Charge based on affordability
There are different people with different purchasing powers. Some can afford things some cannot. That is the reason why we find variety of goods available in the market for different prices. Let me consider a case of a doctor. A patients comes to him in a posh Mercedes for consultation, he charges him Rs. 1000. Another patient comes to him, who is a middle class person, he charges Rs. 500 from him. In this case the doctor is Price Discriminating.
2. Quantity Discount
You go to a local xerox shop for xeroxing your class notes. You see a banner there, "Re.1/page and 60 paise/page for more than 100 copies" in this case the shopkeeper is price discriminating.
Whenever we buy in bulk the price is usually less than the individual retail price. This is known as Price Discriminating based on Quantity discounts.
3. Spatial Differentiation
In this type of Price Discrimination, the price of the product will change from region to region, i.e based on geographic location. An Apple iPod shuffle will be priced differently in India then in US or UK. There could be various reasons for this change in price like currency rates, taxes, transportation cost etc. but the point here is that for the same product the prices are different in different countries. This is known as Spatial Price discrimination.
4. Price skimming
Whenever a new product is launched in the market, it is usually priced high. The reason behind this is that the company wants to recover as many revenue as possible in the early stages of the product. Now according to Rogers Adoption/ innovation curve, the innovators and the early adopters will go for the product because they believe in exclusivity. So price is not an issue for them. After few months of release of the product the prices tends to come down and the same product is available at a cheaper price, Here again there is Price discrimination. i.e same product, different prices.
5. Bundling
Suppose I go to a restaurant to have a Burger which will cost me Rs. 20. A coke will cost me Rs. 12. Now the waiter tells me about the new offer there. The offer is.. If I order a burger with coke I will get the coke for Rs. 10 instead of Rs. 12 if I would have taken it separately. So I will go with the offer. The ultimate result is that I intended to spent Rs. 20 on the burger but I ended up spending Rs. 30. Here again there is price discrimination. For the coke I paid Rs. 10 instead Rs. 12. The advantage of bundling is that is generates more revenue to the company.
6. Peak Load Pricing
You come across this kind of price discrimination regularly. Take for example you are going to Goa for vacation. Now the tariff of hotel room will vary depending upon which month of the year you visit Goa. June, July is off season. In this period you will get a decent room for Rs. 500, but the same room in the month of Dec, Jan will cost you minimum of Rs. 1200-1500. Again there is price discrimination here based on peak season.
Another example could be of electricity rates. The rates/unit of electricity will be different for residential, commercial and industrial usage. Also the rates/unit for industrial usage will be different during the day time and the night time. The rates are less during the night time for the industries. Now here again the product is same "Electricity" but the prices are different.
Now this was about Price discrimination and its different classification. There could be many more ways in which we can classify Price discrimination.
Hope this will benefit you all.
