Many convenience stores now have mail slots where customers can pay their utility bills. The utility companies handle all the processing while the customers get the benefit of not having to use postage. The convenience store owner gets the advantage of the extra foot traffic. The mail slots are an example of
A)societal pricing.
B)revenue sharing.
C)value-pricing.
D)barter.
E)cost-pricing.

Question

Quizplus · Accepted Answer

This is an example of value-pricing, where the convenience store is offering a service (the ability to pay utility bills) that has value to customers, and they are able to charge a fee for that service. The fee charged is likely to be more than the actual cost of postage, but customers are willing to pay a premium for the convenience of being able to pay their bills while they're out running errands.

Many Convenience Stores Now Have Mail Slots Where Customers Can