Economic Analysis of Business Practice
I'd venture a guess, but this appears to be tongue-in-cheek. :D
Students are the future contributors to society. Making certain companies offer discounts. Most importantly, it’s a marketing ploy. It gets them in to shop and spend money regardless how little the discount may be. By many standards, the average college student is broke. Ask my college student son! Companies are aware of this, therefore, taking advantage of the broke college student and offer them discount or special deals. Students are target consumers.Suzette McMillan, Empire State College, Dr. Singh, ECO-065155X
My thinking is only development and that is going to happen with determination and passion, I am doing what I love to do and that is Forex trading, it’s the finest business of all time and there is massive profits possible here with high class broker like OctaFX, it has all the right tools to make me a winner all the time especially with low spread of 0.2 pips for all major pairs and at times it goes even lower than that for a lot of pairs.
Giving students discounts makes total sense regardless of the product. It is the perfect storm for success. By offering discounts to students you are motiving this group to shop and more importantly purchase. You also have the potential to win over a lifetime customer, a customer that will not always be a low value customer. It’s just a win. When I was in college the first time around the NY Islanders were in the midst of some lean years, but the arena was packed during the week. It was packed because they offered week night tickets for $8, with a student id. My group of friends attended every Tuesday night home game for a couple of years; the upper section seats were packed with college kids. Plenty of beer and hot dogs were consumed, plus everyone had the jersey of their favorite player. I always thought that this was great idea and I went to a lot of games that I could not otherwise attend without the discount. Many years later I was a season ticket holder in a much lower section with much higher price; no discount was offered! I always looked up to those upper sections and wondered how many college kids were enjoying the game on the discount. Although I was spending a fortune every year, I was not at all bothered by the discount the students received. This is the motivation for price discrimination: it allows a firm to sell items to low-value customers who otherwise would not purchase because the prices are too high. (Froeb ET all, pg. 165, 2014). JGFroeb, L.M., McCann, B.T., Ward, M.R. & Shor, M. (2014). Managerial Economics: A Problem Solving Approach. Mason, Ohio: Southwestern Cengage Learning.