Stores such as Costco and Sam's Club require an annual membership before you can shop there.This is a form of
A) two-part pricing.
B) price gouging.
C) a tie-in sale.
D) anti-competitive behavior.

Question

Quizplus · Accepted Answer

Two-part pricing is a pricing strategy where consumers are charged a fixed fee in addition to a per-unit price for a product or service. In this case, the annual membership fee is the fixed fee, and the price of each product purchased in the store is the per-unit price. By requiring consumers to pay an annual fee upfront, Costco and Sam's Club can offer lower prices on their products since the cost of goods sold is spread across a larger customer base. Therefore, the correct answer is A) Two-part pricing.

Stores Such as Costco and Sam's Club Require an Annual