Problem
Grocery stores often set consumer-specific prices by issuing frequent-buyer cards to willing customers and collecting information on their purchases. Grocery chains can use that data to offer customized discount coupons to individuals.
a. Which type of price discrimination-first-degree, second-degree, or third-degree-are these personalized discounts?
b. How should a grocery store use past-purchase data to set individualized prices to maximize its profit? (Hint: Refer to a customer's price elasticity of demand.)
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.