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Loyalty Cards and Price Discrimination – 25-Mark EdExcel Essay Plan

Geoff Riley

10th January 2026

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Price discrimination is a core topic in A-level microeconomics, and supermarket loyalty schemes provide an excellent real-world example. In this video, we examine how supermarkets use loyalty cards such as Tesco Clubcard and Sainsbury’s Nectar Prices to practise third-degree price discrimination. You’ll explore how firms segment consumers based on price elasticity of demand, the impact on consumer surplus, and whether two-tier pricing benefits or exploits shoppers. Using recent CMA evidence, diagrams, and evaluation points, this video helps you build a balanced 25-mark essay response with clear analysis and judgement.

Loyalty Cards and Price Discrimination – 25-Mark EdExcel Essay Plan

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Geoff Riley

Geoff Riley FRSA has been teaching Economics for nearly forty years. He has over twenty years experience as Head of Economics at leading schools. He writes extensively and is a contributor and presenter on CPD and Revision conferences in the UK and overseas.

@tutor2uGeoff

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