And it's a technique of price discrimination as well as it allows customers to select higher price or lower price differentiating on packaging or other percepti

And it's a technique of price discrimination as well as it allows customers to select higher price or lower price differentiating on packaging or other perceptions they might hold. Here is more on how/why it is done in consumer markets: http://www.mbs.edu/home/jgans/mecon/value/segment%204_4.htm http://www.mbs.edu/home/jgans/mecon/value/segment%204_4.htm Versioning (second-degree price discrimination) In second-degree price discrimination, firms typically offer a list of different prices to consumers, allowing the consumers to self-select. In versioning pricing strategies, companies sell variations of a product or service at different prices to different groups of customers. Ideally, companies want to charge what consumers are willing to pay thereby maximising company revenues. But it is difficult to know precisely how much each person is willing to pay. Companies therefore create versions of a product to appeal to different types of buyers. Customers then choose the version that best meets their needs. Businesses often distribute a physically identical product under different brand names, charging lower prices for the less known brand name. For example, the Gap Company sells its products with the Gap label at its own stores as well as under other labels at other retail stores.