Scenario Two

Assume you have recently been hired as the new manager of EyeTech Company, an innovative company that sells specialized eye care equipment, primarily to Ophthalmologists, Optometrists, Eye Surgeons, Clinics, and Hospitals. You have decided that in an effort to increase sales, EyeTech will use one form of price discrimination for at least one year. There are typically three different degrees of price discrimination to choose from: First Degree, Second Degree, and Third Degree.

1. Explain in detail the meaning of First Degree Price Discrimination, Second Degree Price Discrimination, and Third Degree Price Discrimination.
2. Assume that each degree of price discrimination can be successfully implemented by EyeTech Company.Select the degree of price discrimination that you believe will be the most successful in improving sales, and explain why. (Note that you can only select one specific degree. Do not select more than one degree or a combination of degrees.)
3. To also gain more insights into EyeTech's primary consumers and their demand for EyeTech's products, you have decided to use one of the four strategic tools for managers highlighted in the Module Three Lecture to better understand consumer demand. Identify and describe the tool (one only) you believe would provide the best insights into EyeTech's primary consumers, and explain why you believe this particular tool would be the best one to use.