Which of the following refers to pricing a product or service above its market value to pay for the loss of giving a product away for free or below its market value?
A)direct cross-subsidies
B)price plus
C)freemium plus
D)BOGO pricing

Question

Quizplus · Accepted Answer

Direct cross-subsidies involve charging a higher price for one product or service to cover the cost of offering another product or service at a lower price or for free. This is often done to attract customers to the lower-priced or free offering while still maintaining profitability overall. Price plus refers to adding a markup or profit margin to the cost of producing a product or service, while freemium plus refers to offering a basic version of a product or service for free with additional premium features available at a cost. BOGO pricing refers to a buy-one-get-one promotion where customers receive a free item with the purchase of another item at full price.

Which of the Following Refers to Pricing a Product or Service