Assalamualaikum and good day, students.

Today, let’s talk about Segmented Pricing – a smart pricing strategy where a company sells the same product at different prices to different customers or situations. This is not cheating, it’s a strategy based on customer behaviour, location, or time.

Let me explain the six types of segmented pricing, one by one, with easy Malaysian examples and their impact.

a. Customer Segment Pricing

This means different customers pay different prices for the same product.
📍 Example: Students get a discount at TGV Cinemas in Malaysia, while adults pay full price.
✅ Impact: Encourages specific groups like students or seniors to buy more.

b. Product Form Pricing

This is when different versions of the same product are priced differently.
📍 Example: A 1-litre Tropicana Twister bottle is cheaper per ml than the 300ml bottle.
✅ Impact: Gives options to customers with different budgets and increases sales across product sizes.

c. Image Pricing

This is when the price is set based on the brand image, even if the product is similar.
📍 Example: A handbag from Bonia is priced higher than a similar unbranded bag due to brand image.
✅ Impact: Builds prestige and brand loyalty for high-end customers.

d. Channel Pricing

This means the price is different depending on where it’s sold.
📍 Example: A phone charger might cost RM25 at a physical store, but only RM18 on Shopee.
✅ Impact: Helps companies manage costs between online and offline channels and attract more online shoppers.

e. Location Pricing

Prices change depending on geographic location.
📍 Example: A bowl of laksa might cost RM5 in Kedah but RM8 in KL.
✅ Impact: Allows businesses to match local income levels and costs of operation.

f. Time Pricing

This is when prices vary by time of day, week, or year.
📍 Example: GrabCar rates increase during rush hours or rainy weather.
✅ Impact: Helps manage demand and increase revenue during peak times.

💬 In conclusion, segmented pricing allows businesses to maximize profit, serve different types of customers, and remain competitive. If used well, it benefits both the company and the customer.