Explanation:

Channel-Based Pricing is adopted in order to set price depending on the means of delivery of goods or services. Channel power, conflict, and competition further complicate suppliers go to market strategy, thus they use different channels to get the product to the market. Thus the price discount is determined based on the channel reach or transaction volume.

For various customer segments discount levels should be established which has multiple channels serving different segments. Compensations needs to be decided accordingly as e-commerce and evolving logistics capabilities are changing the scenario.