Suppliers adopting activity-based pricing may encourage customers to limit the variety of goods they purchase to mitigate the price to be charged.

Question

Quizplus · Accepted Answer

Activity-based pricing charges customers based on the resources used to provide a service or product, which means that customers may try to reduce the number of resources used by limiting the variety of goods they purchase.

Suppliers Adopting Activity-Based Pricing May Encourage Customers to Limit the Variety