Keisha has been inundated with product-of-the-month offers from various marketing companies. She is consider-ing joining a club that allows DVDs to be downloaded from a members-only Web site, but can’t decide which membership offers the best deal. Given the cost informa-tion below, which club would you recommend for Keisha? Club Membership fee Cost per DVDAlmost Free Flicks $ 40 $5Best Movies $ 65 $4Choice Cinema $100 $3
Customary Pricing
There are various types of pricing strategies followed in the market. They are psychological pricing, odd pricing, free onboard pricing, customary pricing, prestige pricing, dual pricing, ruling pricing, negotiated pricing, mark up pricing, etc. each one can be explained as follows:
Multiple Unit Pricing
“Multiple-unit pricing is a practice where a company offers consumers a lower than unit price if a specified number of units are purchased.”
Keisha has been inundated with product-of-the-month
offers from various marketing companies. She is consider-
ing joining a club that allows DVDs to be downloaded
from a members-only Web site, but can’t decide which
membership offers the best deal. Given the cost informa-
tion below, which club would you recommend for Keisha?
Club Membership fee Cost per DVD
Almost Free Flicks $ 40 $5
Best Movies $ 65 $4
Choice Cinema $100 $3
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