What is the practice of selling the same product at different prices known as?

The practice of selling the same product at different prices is known as price discrimination. This occurs when a seller charges different prices to different consumers for the same good or service, based on various factors such as demand elasticity, customer characteristics, or purchasing conditions. The main goal of price discrimination is to capture consumer surplus and maximize profits by charging higher prices to those willing to pay more while still selling to price-sensitive consumers at lower prices.

For example, airlines often use price discrimination by offering different prices for the same flight depending on when the ticket is purchased, how far in advance it's booked, or the class of service. This allows them to optimize their revenue based on varying willingness to pay among different consumer segments.

The other terms, while related to pricing strategies, do not specifically denote selling the same product at different prices. Price adjustments generally refer to changes in prices based on supply and demand but do not inherently involve consumer differentiation. Competitive pricing is about setting prices based on competitors’ actions rather than varying prices for the same consumer. Market segmentation involves dividing a market into distinct groups of buyers, which may use different pricing strategies but is not the same as the practice itself.