Segmented pricing, or price discrimination, charges different prices to different customer groups based on their willingness or ability to pay. Segmentation can be by age, location, time, or purchase volume.
Examples include student discounts at cinemas, early-bird airline ticket pricing, and educational software discounts for schools. Ride-sharing apps charge more during peak hours (surge pricing).
This strategy maximizes revenue by capturing value from different customer segments. It works because different customers have different price sensitivities and willingness to pay.