A financial institution that charges its customers based on the number of services they use and grants lower deposit fees or waives some fees for a customer that purchases two or more services is practicing:
A)marginal cost pricing.
B)conditional pricing.
C)relationship pricing.
D)upscale target pricing.
E)None of the options is correct.

Question

Quizplus · Accepted Answer

This practice is known as relationship pricing, which is a strategy used by financial institutions to incentivize customers to purchase multiple services. By doing so, the institution can build a stronger relationship with the customer and potentially increase customer loyalty. Conditional pricing refers to offering different pricing based on certain conditions or criteria, but it is often used interchangeably with relationship pricing. Marginal cost pricing is a strategy where products or services are priced based on the incremental cost of producing or delivering them, and upscale target pricing refers to pricing products or services higher to appeal to a specific affluent market segment.

A Financial Institution That Charges Its Customers Based on the Number