Some service firms often engage in ________, consisting of a fixed fee plus a variable usage fee.
A) pure bundling
B) pure pricing
C) mixed pricing
D) captive pricing
E) two-part pricing

Question

Quizplus · Accepted Answer

Two-part pricing involves a fixed fee for basic service and an additional variable fee for usage above a certain level. This is often utilized by service firms to incentivize customers to use more of their services while still ensuring they receive a base level of revenue.

Some Service Firms Often Engage in ________, Consisting of a Fixed