About: Price walking

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Price walking, or the loyalty penalty, is a form of price discrimination whereby longstanding, loyal customers of a service provider are charged higher prices for the same services compared to customers that have just switched to that provider. The pricing strategy is common in the insurance and telecommunications industries. It is used to acquire new customers with artificially low rates or other incentives not available to existing clients, effectively using existing customers to subsidize the prices offered to new clients.

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  • Price walking, or the loyalty penalty, is a form of price discrimination whereby longstanding, loyal customers of a service provider are charged higher prices for the same services compared to customers that have just switched to that provider. The pricing strategy is common in the insurance and telecommunications industries. It is used to acquire new customers with artificially low rates or other incentives not available to existing clients, effectively using existing customers to subsidize the prices offered to new clients. (en)
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  • Price walking, or the loyalty penalty, is a form of price discrimination whereby longstanding, loyal customers of a service provider are charged higher prices for the same services compared to customers that have just switched to that provider. The pricing strategy is common in the insurance and telecommunications industries. It is used to acquire new customers with artificially low rates or other incentives not available to existing clients, effectively using existing customers to subsidize the prices offered to new clients. (en)
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  • Price walking (en)
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