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Sephora sent me a promotional email about their upcoming spring savings event, and I thought of this as price discrimination. The promotion includes varying discounts
Sephora sent me a promotional email about their upcoming spring savings event, and I thought of this as price discrimination. The promotion includes varying discounts on three tiers of loyalty. The entry level of this loyalty program does not require minimum spending and provides customers 10% off beauty products with a shorter promotional date slot. After the first level, there is the VIB status which requires the customer to spend a minimum of $350 per year to receive 15% off the products and this includes a longer slot time to shop the goods. Lastly, there is the VIB Rouge status that yields a 20% off discount and offers the longest discount period. Along with the price discounts, there is a points redemption program and the benefits improve the more you spend. The method of price discrimination applied here is a retail incentive and affects different market segments that are willing to pay more to reap the rewards. A link to the Sephora Spring Sale is available below. Resources: https://blog.blackcurve.com/why-do-companies-price-discriminate https://www.sephora.com/ca/en/beauty/savings-event
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