Answer to Question #235814 in Marketing for jay

Question

Why should Branson hotels and restaurants consider offering senior citizen discounts?

Answer 1

Branson hotels and restaurants should consider offering senior citizen discounts because evidence suggests they are careful shoppers, mindful of prices, searching for deals. The discounts at cinemas may be the result of altruism by the owners, but it also could simply be a realization of different willingness-to-pay by seniors, a group that is easily identified and segmented by the presenter. Seniors pay less for groceries than non-seniors who shop at the very same stores, not because of discounts labeled “seniors discount” but because they take advantage of coupons and random sales. In that case, the store recognizes different willingness-to-pay by a group but employs indirect price discrimination to provide the discount.