APICS Certified Supply Chain Professional (CSCP) — Question 426

The purpose of price differentiation is to:

Answer options

• A. reduce sales variability.
• B. clear out inventories.
• C. increase total revenue.
• D. increase customer loyalty.

Correct answer: C

Explanation

The correct answer is C, as price differentiation aims to maximize total revenue by capturing consumer surplus from different segments. Options A, B, and D, while they may be outcomes of pricing strategies, do not directly relate to the primary objective of increasing total revenue.