Global and regional pricing Research Paper Example | Topics and Well Written Essays - 250 words

worldwide and regional pricing - Research Paper ExampleThe rationale for charging varied prices, based on the precise regions, is that a particular region may demand businesses to charge a impose price for their products, opus another location may require higher pricing due to the quality or paper of the product. A person travelling from Tampa to Miami using a ad hominem car will always entrap that the price of Gasoline varies depending on the distance from the main path, with higher prices being charged close to the highway and lower prices far away from the highway. Similarly, retail stores in the same locality may charge lower prices, for same products on the store floor, in unalike regions as a way of increasing sales volume from stocks that are not moving, improve store traffic or compete directly with different stores and retail chains. Differential regional pricing is therefore dependent on the popularity of the product, the competitiveness of the product and demogr aphic characteristics of the customers in the different regions.Price discrimination entails charging different prices for the same product or a transition of the same product, in different countries. Microsoft Corporation has emerged as a monopoly in the development and sell of ready reckoner software and programs. The company offers several versions of the Microsoft office program, which are priced differently, based on the various categories of consumers, including businesses, academia and personal computer users. Through price discrimination, Microsoft separates its consumers and charges different prices with the goal of capturing customer surpluses and optimizing its profit margins. Microsoft has been accused of charging different prices to the different consumers of the same product. Popa (2012) observes that Microsoft, Apple and Adobe face risks of legal proceedings due to their