Question

Why is price discrimination more common in service industries than in manufacturing industries?

Answer 1

In the service industry the goods are more personalised than the manufacturing industry, and in the service industry the seller can know the personal preference of the consumer more easily, For example a consumer buying an apple phone, the phone will be the same for everyone thereby the price discrimination is difficult, but the cellphone service or the connectivity can be personalised if the person need more international calls, or more internet access or more talk time, it will make the service more direct and personalised increasing the discrimination.