Test Your Knowledge: Price Components

Answer to Question 1: There are two possible answers here. From the perspective of the shipping company, this is a
Basis of Charge example. If we use the retailer as the company doing the pricing, this is an example of an
Optional Price Component.

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Answer to Question 2: This is a
Discount offer to an existing customer, a customer status discount.

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Answer to Question 3: There are two price component examples here. First, is a multiple purchase
Discount covering lodging and skiing. Second, this is an example of a
Period of Price Effectiveness.

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Answer to Question 4: This is an example of a
Basis of Charge. Here the basis is a price for a result achieved.

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Answer to Question 5: This is a example of an
Optional Price Component, a bonus for the seller. The 10% fee on its own, is an example of a
Basis of Charge where the basis is an event occurrence.

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Answer to Question 6: This is an example of a
Period of Price Effectiveness.

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Answer to Question 7: This pricing has two examples: a
Period of Price Effectiveness and an
Optional Price Component, which is a bonus for the customer.

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Answer to Question 8: This is a pricing example of a
Discount on a high visibility product.

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Answer to Question 9: This pricing has two examples of components. The company has changed the
Performance Benefits of the product to reduce the support features. This creates the ability to offer a
Discount based on limited availability. The 50% penalty for changes or cancellation is an example of an
Optional Price Component.

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Answer to Question 10: This pricing structure offers several examples of pricing components. The ticket re-issue charge is an example of an
Optional Price Component, a penalty for the customer. The charge for overnight mail is a change in
Performance Benefits creating a charge for the support features upgrade. The charges for the complicated domestic and international itineraries are
Optional Price Components, a fee over the variable charge.

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