Grocery store chains often set consumer-specific prices by issuing frequent-buyer cards to willing customers and collecting information about their purchases. Grocery store chains use that data to offer customized discount coupons to individuals.

a) Which type of price discrimination (perfect, group, or nonlinearare) these personalized discounts? Personalized grocery store discounts are a type of ......(select from group perfect or nonlinear) price discrimination.

b) How should a grocery store use past purchase data to set individualized prices to maximize its profit? (Hint: Refer to a customer's price elasticity of demand.)

c) A grocery store could increase profits by using past purchase data to charge prices to customers whose demand is relatively more ...(select from elastic or inelastic) .