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.
-Ask Dr. Tech uses a(n) _____ strategy when charging businesses for its services.
A) price optimization
B) flat-rate pricing
C) variable-price
D) penetration pricing
E) leader pricing

Question

Quizplus · Accepted Answer

Ask Dr. Tech uses a flat-rate pricing strategy by charging a fixed annual fee of $299 for providing tech support to small businesses, regardless of how often the service is used.

Due to a Number of Layoffs in the Technology Industry