Question

Which of the following refers to pricing a product or service above its market value to...

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
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Homework Answers

Answer #1

Answer:a.Direct cross subsidies

Direct cross is the term used to refer to the pricing strategy where the products are priced above it's market value to pay for the loss of giving a product away for free or below it's market value.

Other options explained

Price plus

False.The strategy of 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 is called direct cross subsidies.

Fremium Plus

False.Refers to a pricing strategy where the service is offered for free and additional content is charged.

BOGO pricing

False.BOGO(Buy on get one free) is a pricing strategy used to promote sales.

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