Discussion
In ....................... pricing method of service marketing, a marketer chooses to charge low price for a basic service to attract customers but every extra service above basic is charged additionally high.
Answer: C
The method is diversionary pricing.
In diversionary pricing a service firm advertises a low price for a basic service to draw customers in, and recovers its margin by charging high prices for every additional service, as when a garage offers a cheap basic service but charges heavily for extras.
Differential pricing charges different prices to different segments or at different times; discount pricing reduces the price for prompt payment, volume or off-season use; and high price maintenance pricing keeps a high price to signal quality.
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