ABC Corporation does site work for large-scale industrial buildings. For a large multiyear project, ABC needs a certain type of excavator that would cost a fortune to own, maintain, and store over the winter months. Instead, ABC enters into a contract with Jacobs Machinery to use one of their machines for the duration of the project. Jacobs Machinery continues to own the excavator and charges ABC a monthly fee. Which pricing policy is ABC using in this scenario?
ABC Corporation does site work for large-scale industrial buildings. For a large multiyear project, ABC needs a certain type of excavator that would cost a fortune to own, maintain, and store over the winter months. Instead, ABC enters into a contract with Jacobs Machinery to use one of their machines for the duration of the project. Jacobs Machinery continues to own the excavator and charges ABC a monthly fee. Which pricing policy is ABC using in this scenario?
Principles Of Marketing
17th Edition
ISBN:9780134492513
Author:Kotler, Philip, Armstrong, Gary (gary M.)
Publisher:Kotler, Philip, Armstrong, Gary (gary M.)
Chapter1: Marketing: Creating Customer Value And Engagement
Section: Chapter Questions
Problem 1.1DQ
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ABC Corporation does site work for large-scale industrial buildings. For a large multiyear project, ABC needs a certain type of excavator that would cost a fortune to own, maintain, and store over the winter months. Instead, ABC enters into a contract with Jacobs Machinery to use one of their machines for the duration of the project. Jacobs Machinery continues to own the excavator and charges ABC a monthly fee. Which pricing policy is ABC using in this scenario?
Transcribed Image Text:**Scenario Description:**
ABC Corporation conducts site work for large-scale industrial buildings. For an extensive multiyear project, ABC requires a specific type of excavator that is costly to own, maintain, and store during the winter months. Instead of purchasing the excavator, ABC enters a contract with Jacobs Machinery to use one of their machines for the project's duration. Jacobs Machinery retains ownership of the excavator and charges ABC a monthly fee.
**Question:**
Which pricing policy is ABC using in this scenario?
**Multiple Choice Options:**
- ○ A skimming pricing policy
- ○ A lease
- ○ Value pricing
- ○ An installment
- ○ Seasonal discount
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