(a) Frequent-flier and frequent-stay programs:
Frequent-fliers are incentive programs used by airlines to reward clients who have continuously been loyal travelers. The strategy aims to reduce travel costs to persuade travelers to become lifetime clients. Frequent-stay is a program that offers free stay in hotels for travelers who use hotel facilities quite often. The hotel industry introduced this program to ensure that as business people and travelers spend more time in hotels, they earn points that eventually allow them to enjoy free nights. Frequent-flier and frequent-stay programs are some of the most renowned strategies of developing loyalty among travelers. The criterion used for this type of reward program is quite often unknown. Therefore, it is certain that this is not a subtle form of price discrimination.
(b) Manufacturers’ discount coupon programs:
The discount coupon program aims to reduce the prices of goods and services for customers who can meet the manufacturers’ set prices irrespective of the prevailing demand. The latter is distinct from the direct reduction of prices. Manufacturers use discount coupons to target a specific consumer segment that has some element of elasticity in price. It is important to note that there are clients whose demand is more elastic than others. Therefore, using discount coupons is a subtle way of discriminating against the prices of goods and services.
(c) A retailer’s guarantee to match a lower competing price:
This refers to a situation whereby retailers make an implicit guarantee to sell products to customers at a given price to outwit competitors’ prices. In most cases, it does not work well for retailers if the profit margin is reduced. Therefore, it may not be a subtle form of price discrimination