Which term describes the practice of charging different prices to different consumers for the same product or service?

The term that accurately describes the practice of charging different prices to different consumers for the same product or service is price discrimination. This strategy allows sellers to maximize profits by adjusting prices based on various factors, such as consumer willingness to pay, quantity purchased, and consumer characteristics.

Price discrimination can take several forms, such as first-degree discrimination, where each consumer is charged the maximum they are willing to pay; second-degree, where prices vary according to the quantity consumed or product version; and third-degree, where different consumer segments are charged different prices based on identifiable characteristics, such as age or location.

This practice is common in various industries, such as airlines, where prices can vary significantly depending on the time of booking, traveler flexibility, and market demand. Understanding price discrimination is essential for anyone studying strategic sales force management since it influences pricing strategies and customer segmentation approaches in sales.