Segmentation and price differentiation

On Fine Wine Pricing across Different Trading Venues

Journal of Wine Economics ◽

10.1017/jwe.2021.14 ◽

2021 ◽

pp. 1-21

Author(s):

Paweł Oleksy ◽

Marcin Czupryna ◽

Michał Jakubczyk

Keyword(s):

Size Effect ◽

Linear Relationship ◽

Over The Counter ◽

Price Differentiation ◽

Informed Decisions ◽

Simulation Results ◽

Wine Aging ◽

Jel Classifications

Abstract This article examines how selected attributes of Bordeaux fine wines (producer, vintage, quality, bottle size, case, flaws, and transaction volume) affect prices in three types of trading venues: auctions, electronic exchange, and the over-the-counter (OTC) market. The findings indicate a price differentiation across the venues. Wine aging leads to relatively higher prices at auctions than on the electronic exchange or the OTC. There is a nearly linear relationship between prices and wine ratings, the strongest of which is found in the case of auctions. The bottle size effect is mostly positive for supersized formats and is the strongest on an electronic exchange and the weakest at auctions. The transaction volume negatively affects wine prices in all the trading venues. The simulation results facilitate the construction of more realistic trading models and may help traders make more informed decisions on the choice of a trading venue, depending on the wine characteristics. (JEL Classifications: D40, G12, Q14, L66)

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Multi-objective framework for process mean selection and price differentiation with leakage effects under price-dependent stochastic demand

Computers & Industrial Engineering ◽

10.1016/j.cie.2018.11.010 ◽

2019 ◽

Vol 127 ◽

pp. 698-708 ◽

Cited By ~ 5

Author(s):

Syed Asif Raza ◽

Faseela Chakkalakkal Abdullakutty ◽

Sivakumar Rathinam ◽

Srikrishna Madhumohan Govindaluri

Keyword(s):

Stochastic Demand ◽

Process Mean ◽

Multi Objective ◽

Price Differentiation

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EQUALITY, THE CONSUMER PROTECTION ACT AND CUSTOMER-SEGMENT PRICING STRATEGIES: IS THERE RELIEF FOR THE POOR RICH TOURIST?

Obiter ◽

10.17159/obiter.v31i2.12367 ◽

2021 ◽

Vol 31 (2) ◽

Author(s):

Mark Tait ◽

Madéle Tait

Keyword(s):

South Africa ◽

Consumer Protection ◽

National Park ◽

Negative Impact ◽

Tourism Industry ◽

Pricing Strategies ◽

Price Differentiation ◽

Consumer Protection Act ◽

Customer Segment ◽

The Republic

The year 2010 is Soccer World Cup year in South Africa. From watching the press and other media it quickly becomes apparent that this event is perceived as something of a cash cow to be used (and sometimes even abused) to generate maximum profit for certain industries and its businesses. Complaints have been made about airlines and accommodation establishments hiking prices excessively. The tourism industry has been warned about the negative impact such exorbitant prices may have on tourism in the future as South Africa may no longer be considered as a value-for-money destination. The hiking of prices is based on an anticipated increase in demand for certain services and products caused by the expected influx of soccer tourists. Businesses world-wide employ different pricing strategies to try and optimize revenue. One such pricing strategy that is employed is to differentiate between citizens and foreign nationals when charging for a service or product. This strategy in the context of the tourism industry is the focus of this note. Whilst the tourist is visiting South Africa s/he may want to visit some attractions and it is often at these places that an interestingsituation can be observed. International tourists have to pay one price whereas citizens pay a reduced price. For instance, a visit to the website of the Addo Elephant National Park reveals that SANParks asks different prices – for South African citizens and residents R30 per day visit, SADC nationals R60 per day visit, and foreign visitors R130 per day visit to the Addo Elephant National Park. Similar price differentiation is employed by private businesses as well. Other jurisdictions in Africa also make use of similar customer-segment pricing strategies. The Ugandan Wildlife Authority differentiates between admission fees for foreign non-residents and East-Africans to protected areas such as Lake Mburo and the Semuliki National Park. The Consumer Protection Act 68 of 2008 (hereinafter “the CPA”), once operational, will prohibit the charging of different prices for any goods or services to any persons or category of persons on the basis of one or more of the grounds of unfair discrimination contemplated in section 9 of the Constitution of the Republic of South Africa, 1996 (the Constitution) or Chapter 2 of the Promotion of Equality and the Prevention of Unfair Discrimination Act 4 of 2000 (hereinafter “the Equality Act”), amongst others. Does this mean that suppliers of services and products to tourists who differentiate in the prices asked between citizens and non-citizens will fall foul of this provision of the CPA? This is the question this note will endeavour to answer.

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PRICE DIFFERENTIATION AND RATE FENCING IN GOLF COURSE SECTOR

SGEM 2014 Scientific SubConference on POLITICAL SCIENCES, LAW, FINANCE, ECONOMICS AND TOURISM ◽

10.5593/sgemsocial2014/b23/s7.053 ◽

2014 ◽

Author(s):

Aurelian A. Bondrea

Keyword(s):

Golf Course ◽

Price Differentiation

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DIVERGENT CHANGES IN THE FOOD SECTOR

INNOVATIVE ECONOMY ◽

10.37332/2309-1533.2021.3-4.1 ◽

2021 ◽

pp. 5-11

Author(s):

Iryna Ivashchuk ◽

Iryna Karp

Keyword(s):

Sustainable Development ◽

Food Security ◽

Poverty Reduction ◽

Consumer Price Index ◽

Industrial Sector ◽

Food Sector ◽

Price Differentiation ◽

The World ◽

Food Security Indicators ◽

Security Indicators

Purpose. The aim of the article is to analyse and evaluate divergent changes in the food sector of Ukraine and other countries, taking into account the challenges of the environmental environment. Methodology of research. The following research methods are used to achieve this goal: theoretical synthesis, analysis, abstract and logical – to reveal the relationship of the global food crisis in the context of achieving food security goals; interpretation and comparison – to determine the prospects for improving food security; tabular and graphical – for a visual representation of food security in the world. Finding. It has been established that food security is an objective necessity for human development. Its provision is a guarantee of regular access of the population to high-quality food necessary for leading an active and healthy life. There has been an increase in food insecurity in many countries around the world, which was especially acute during the COVID-19 pandemic. Taking into account the analysed indicators of food security, reserves have been identified for improving the growth of food security in the strategy of sustainable development of Ukraine and the world. Originality. A cumulative interrelated analysis of pandemic and post-pandemic poverty growth, declining profitability, and price differentiation in food security has been conducted. The assessment of divergent changes in the food sector of Ukraine and other countries is carried out taking into account the challenges of the environmental environment. Practical value. The results of the study on food security can be used in the management of the economy and the agro-industrial sector as one of the goals of sustainable development. Key words: food security, pandemic, poverty, reduction of profitability, strategic development goals, global environment, food security indicators, consumer price index.

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