Price fences let you charge different customers different prices without changing the core product. This quiz tests how to design fair, transparent fences that segment demand and avoid backlash.
Which is the primary goal of a price fence?
Segment customers by willingness to pay without altering the product
Equalize margins across every SKU
Increase list price across all customers
Hide surcharges deep in checkout flows
A time-based fence that offers lower prices for weekday matinees primarily targets which segmentation signal?
Customers with high brand loyalty
Wholesale buyers only
Higher switching-cost customers
Lower opportunity cost customers
Which practice most reduces backlash risk when using dynamic ticket pricing?
Adding surprise fees at checkout
Removing price floors entirely
Publishing clear rules and caps before tickets go on sale
Changing prices every few minutes without notice
Which of the following is a defensible eligibility fence?
Charging new users more than returning users without disclosure
Charging random prices to test elasticity
Charging different prices based on surname
Student ID required for discounted plans
A retailer offers in‑app coupons that are not available in-store. This is best described as a ______ fence.
channel/access
cost-plus
quality
versioning
When regulators target ‘drip pricing’, which fence design principle becomes most critical?
Geo‑fencing price pages
Increasing service fees to offset taxes
Deeper last‑minute discounts
Full-fee transparency up front
Loyalty‑tier discounts that unlock after spend thresholds combine which elements?
Price matching and MAP enforcement
Randomization and queueing
Self‑selection and eligibility proof
Mandatory bundling and tie‑ins
Which KPI most directly shows whether fences improved unit economics rather than just volume?
Email open rate
Store traffic only
Gross impressions
Contribution margin per unit
A sports club pairs dynamic pricing with loyalty rewards and fee caps. The intent is to ______.
offset fairness concerns while keeping revenue optimization
eliminate price variance entirely
guarantee sellouts for every match
reduce secondary‑market activity to zero
Which example is most likely to trigger backlash?
Advance‑posted surge bands
Off‑peak day passes clearly labeled
Student discounts with ID
Large, last‑second price spikes plus hidden checkout fees
Starter
You grasp the idea of fences—now focus on transparent rules and defensible eligibility to avoid fairness blowback.
Solid
Good read on segmentation. Sharpen KPIs around margin lift and document caps so customers see fairness, not gamesmanship.
Expert!
Excellent. You’re designing fences that segment cleanly, defend publicly, and enhance contribution profit.
