Discussion

This discussion will give you an opportunity to explore direct and indirect price discrimination within the context of a hypothetical scenario.

Your business partner is strongly opposed to your proposal to change your largest customers lower prices for your web-based services that you will charge your smaller customers.  She is arguing it is unethical, unfair, and possibly illegal.  

Address the following:  

Make a case that both groups of customers will be satisfied with the deal and that this is a perfectly legal form of pricing in a business-to-customer relationship.

 - What degree is this type of price discrimination?

 - How will the plan increase revenue?

 - Why will both groups of customers be satisfied with the deal?

 - Why is this a legal form of pricing?

Use reputable sources to support your case to your business partner.