Grocery stores often set consumer-specific prices by issuing frequent-buyer cards to willing customers and collecting information on their purchases. Grocery chains can use that data to offer customized discount coupons to individuals. a. Are grocery stores engaging in perfect or group price discrimination, or some other type of pricing? b. How should a grocery store use past-purchase data to set individualized prices to maximize its profit? (Hint: Refer to a customer's price elasticity of demand.)
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