The service industry has become the cornerstone of the US economy. Customer serv

Question

The service industry has become the cornerstone of the US economy. Customer service has become the defining element of many businesses. In today’s market certain industries discriminate between average consumers and “good” consumers (average income and rich). A perfect example of this is the airline industry. First class/business class customers have their own ticket counter, contact number and personalized services. Is this consumer discrimination, or simply paying for a higher level of service? Explain how the industry/business that engages in this practice. Is this a logical business plan? Why or why not?

Explanation / Answer

Price of the product   can be discrimination because all the products are same but some body will sell with high price. But here is the service industry, according to the price paid by the customer some facilities will added or removed from the service. Then That services providing organization should cover the all class of people like low, middle, high. So here some discrimination can be expected to be done.   It is a logical plan only because service providers are not refuse any customers, they need all type of customers but facilities and advantage of the service will be differ, the main reason is cost of the raw materials etc are high for service providers, expected to need profit so they can't afford for all customers with same price.

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