IBM's Price Discrimination Strategy for Printers

Answered using GPT-4o mini by AI Answer Generator

Question:

How did IBM price-discriminate its laser printers?

IBM charged seniors lower prices than businesses.

IBM offered printers in different colors.

IBM provided special financing terms to different customers.

IBM offered two different printers: a fast printer and a slow printer.

Answer:

IBM employed price discrimination for its laser printers primarily through the strategy of offering two different printers: a fast printer and a slow printer. This approach allowed IBM to segment the market based on customers' willingness to pay. Businesses that required high-speed printing were likely willing to pay a premium for the fast printer, while customers with lower printing needs could opt for the slower, less expensive model. This method effectively targeted different customer segments based on their specific needs and price sensitivity.