Price Discrimination Approach on the Example of UniCredit Bank dd Mostar

Price Discrimination Approach on the Example of UniCredit Bank dd Mostar

DRECA, Nađa

The aim of this study is to clarify the concept of the price discrimination and to show how this concept is used in banking business on the example of the UniCredit Bank dd Mostar. Price discrimination refers to any no uniform pricing policy used by a firm with market power to maximize its profit. Price Discrimination leads to change in both, quantity and price. So it is also called no uniform pricing, charging customers different prices for the same product or charging the single customer a price that varies depending how many units the customer buys. There are 3 degrees of Price Discrimination. : 1st degree is different prices for both consumers and units, 2nd degree is different prices for different units and 3rd degree is different prices to different consumers. UniCredit Bank d.d. was the first bank in Bosnia and Herzegovina that introduced a new, unique approach to client service model. The basic characteristic of the whole business of the Bank was actually based on the segmentation of clients (existing and new-potential) with complex business lines. The business lines included meeting the needs of clients and facing in accordance with their capabilities and needs. Characteristics of the business model UniCredit Bank dd was the segmental approach to the client, so that the clusters of customers would fit similar characteristics, preferences and market position, and assign them a special service model defined by each business line. JES! Package account is present on the market since 2006 in the form of 4 different models adapted to the needs of the client and used by more than 50,000 customers. JES! account package is available in several different models - Optimum, Expert, Student and Senior. Account package is also practical, useful, stylish and affordable. Keywords: Price Discrimination, Different Customers, Profit, UniCredit Bank, Banking Products, client service model.

Article
PeerReviewed

ISSN 978-9958-834-23-3

International Burch University

2013-05-10

1630