Pricing policy - how a company can price different groups of consumers to eliminate the consumer surplus

Ing. Iveta Solčanská

Master's thesis

Abstract:

The aim of this diploma paper is to prove that the application of the methods of discriminatory pricing is beneficial for both sides of the business transaction, the seller and the buyer, and that through these methods the seller can effectively capture consumer surplus and the buyer can benefit from price discounts. This work contains the theoretical framework of pricing methods, while special focus is put on consumer and producer surplus and discriminatory pricing. In the practical part, an analysis of international manufacturer is conducted and the proposal of discriminatory pricing methods to capture the consumer surplus is given.

Keywords

Capturing consumer surplus, market price, pricing policy, single price policy, discriminatory pricing, producer pricing strategy, intertemporal price discrimination, peak-load pricing, profit, rivalry, consumer base

Language used: English

Date on which the thesis was submitted / produced: 20. 4. 2012

Thesis defence

• Date of defence: 18. 6. 2012
• Supervisor: Ing. Petr Mach, Ph.D.
• Reader: Mgr. Ing. Petr Wawrosz, Ph.D.

University of Finance and Administration

Master programme / field:
Economics and Management / Business Management and Corporate Finance