Last week added new content to the Beyond Cost Plus site that hoped to define and explain the pricing concepts of price discrimination and differential pricing. This week there is some additional content that uses additional real world examples to better illustrate the differences between the two.

In some ways they seem like different points on a spectrum of product differentiation. When there is little or no product differentiation between price points it is price discrimination.

As the degree of product differentiation increases it moves into differential pricing. In that light it seems more accurate to say that price discrimination is part of a larger differential pricing strategy.

It does get confusing but there are some real world examples that make the whole thing easier to understand.

Price Discrimination vs Differential Pricing at Beyond Cost Plus