Netcorp, an Internet service provider, charges its users a fixed rental fee for its basic package, which has a download limit. If a user exceeds this download limit, an additional fee is charged for every download. In this case, the firm's pricing strategy is referred to as pricing.
A) segmented
B) by-product
C) two-part
D) optional-product
E) promotional

Question

Quizplus · Accepted Answer

The firm's pricing strategy is referred to as two-part pricing because it involves a fixed fee (the rental fee) and a variable fee (the additional charge for exceeding the download limit).

Netcorp, an Internet Service Provider, Charges Its Users a Fixed