Price discrimination refers to charging customers different prices for the same product or service based on factors such as willingness to pay, demographics, or purchase behavior. In tiered pricing, customers are segmented into different groups based on factors like quantity purchased, usage level, or desired features, and each group is offered a different price. This allows businesses to capture additional revenue from customers willing to pay more while offering lower prices to price-sensitive customers. Quantity-based pricing can be a legitimate pricing strategy to better serve customers' varying needs and preferences as long as it is implemented transparently and fairly.