Comment by vlovich123

Not necessarily. It also means segmenting the market to extreme lengths so that even a marginal increase in quality is combined with a significantly greater price. It’s about pushing the most price sensitive customers to have the worst quality while the less price insensitive you get a marginally better product for an outsized increase in cost.

I remain convinced that while value extraction is higher in this model, the world people generally want to live in is one where the ability of businesses to price discriminate in this way is not so unbridled.