Management Information Systems: Managing the Digital Firm (15th Edition)
Management Information Systems: Managing the Digital Firm (15th Edition)
15th Edition
ISBN: 9780134639710
Author: Kenneth C. Laudon, Jane P. Laudon
Publisher: PEARSON
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Chapter 7.3, Problem 1.3CQ
Program Plan Intro

 Tiered service model:

  • Tiered service model allows the users to choose from a small set of tiers at gradually increasing price to get the products best matched to their needs.
  • This system is continuously seen in the telecommunications field, exactly when it comes to wireless service, broadband internet access and digital and cable TV options.
  • For example, when a wireless company charges different money for the client based on the number of text messages, voice minutes and any other features they want, the company is using the principle of tiered service.
  • These charges also applicable for other services such as speed of individual’s internet connection and the total number of cable TV channels one has access to.

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