If Lake Boats charges an annual membership fee of $1,200 for the use of a boating slip (a place to store a boat)and charges a $50 fee each time a member docks their boat, this is an example of ______.
A)a single pricing scheme
B)commodity bundling
C)two- part pricing
D)an all- or- nothing offer

Question

Quizplus · Accepted Answer

The pricing strategy being used here is two-part pricing, where there are two components to the price: a fixed fee (the annual membership fee of $1,200 for the use of a boat slip) and a variable fee (the $50 fee charged each time a member docks their boat). This approach is commonly used for memberships or subscriptions, where there is a base fee for access and additional fees for usage.

If Lake Boats Charges an Annual Membership Fee of $1,200