A customer pays an admission fee to get into the local YMCA, and also a monthly membership fee. This is called:
A) Bundling
B) Two-part tariff
C) Price Discrimination
D) Block Pricing

Question

Quizplus · Accepted Answer

The customer is paying a fixed admission fee (one-time) and a recurring monthly membership fee. This is an example of a two-part tariff pricing strategy where the customer is charged a fixed fee for access to the facility and then a variable fee based on the usage or membership.

A Customer Pays an Admission Fee to Get into the Local