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Segmented Pricing Example

***Just need about a paragraph answer...Thanks!

Steinway, a tiny but well regarded New York piano maker in the 1850"s grew quickly after Doretta Steinway, the founder's daughter, got the idea of offering free piano lessons with the sale of each piano.

Can you explain this as a segmented pricing tactic? What are the segments and why would their price sensitivities be different?

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Thanks for posting today.

Clearly, we are selling to different segments here: New players vs Established Players. You substitute the word "players" for "customers" ...

Solution Summary

The solution contains a one-paragraph response to the questions.