PRICE STRUCTURE AND MULTI PART PRICING

Question 1

is the architecture around
which the firm’s pricing mix is designed. It can
be used to price-segment the market.

Answer 1

PRICE STRUCTURE

Question 2

refers to the
manner in which different customers are willing
to pay different amounts in different purchasing
situations

Answer 2

DEMAND HETEROGENEITY

Question 3

A clothing retailer may notice
that their customers from tropical regions tend
to prefer lighter fabrics and more vibrant colors,
while customers in colder regions opt for
heavier, warmer materials and darker shades.

Answer 3

Geographic differences in customer
preferences:

Question 4

is
a fixed sum charged to all
customers regardless of their level
of consumption.

Answer 4

The entrance fee

Question 5

is determined through some
measurement of the units
consumed.

Answer 5

metered fee

Question 6

is designed to create
profits primarily through the sale of the
second good, not the first good.

Answer 6

tying arrangement

Question 7

is one of the purest
forms of a two-part tariff. They
regularly charge a metering fee or
connection fee plus a price per
quantity of utility delivered.

Answer 7

utilities