Due to a number of layoffs in the technology industry, there are many technology experts who are unemployed. Some saw an opportunity to become a third-party suppliers of tech support, especially after they became aware that even handling a small problem for a major company can cost $20. One of the new services is called GeekHelp. When the service was introduced to the market, the entrepreneur who started the company announced it has the cheapest per-minute rate of any of the tech support companies. Another one called Ask Dr. Tech charges a fee of $299 per year to provide tech support for a small business. Because some consumers cannot explain what is wrong with their computers beyond the fact it will not work, GeekXpress will make house calls to organization members who pay a fee of $35 per month. When it added house calls to its services, it did not raise its prices.
-GeekXpress uses _____ pricing.
A) fair-trade
B) value
C) psychological
D) penetration
E) cost-plus

Question

Quizplus · Accepted Answer

GeekXpress uses value pricing, as it offers additional services (house calls) without raising prices, providing more value to its customers.

Due to a Number of Layoffs in the Technology Industry