- CFA Exams
- CFA Level I Exam
- Topic 3. Corporate Issuers
- Learning Module 7. Business Models
- Subject 1. Define the Business Model
CFA Practice Question
Which pricing strategy is NOT an example of price discrimination?
B. dynamic pricing
C. bundling
A. tiered pricing
B. dynamic pricing
C. bundling
Correct Answer: C
Tiered pricing is a method where sellers segment the pricing of their products or services to suit their various target markets.
A dynamic pricing strategy is a type of price discrimination that tries to find the optimum price point at any time. Price changes can be based on the perception of how much a consumer is willing to pay at a specific time for an item, competitors pricing and other variables.
Bundle pricing is a strategy where companies combine complementary products / services together and offer them at a single (often reduced) price.
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