Your Internet provider offers the lowest price in town for Internet service if you sign a two-year contract; however, the low price offer only lasts the first year. Which pricing strategy is the Internet company using to attract customers?

Question

Quizplus · Accepted Answer

This strategy is known as volume maximization, where the company aims to attract a large number of customers by offering low prices initially, even if it means lower profits or revenue in the short term. The goal is to maximize the number of subscribers or volume of sales.

Your Internet Provider Offers the Lowest Price in Town for Internet