Asked by Cashmere Wilson on Jun 10, 2024
Verified
Which of the following is an example of the "metering" strategy
A) A doll company selling dolls at cost but charging high margins on doll accessories
B) A cell phone company offers free locked in phones but charges high prices per call
C) A catering company pays its chefs higher wages to make sure that the bargain meals are just slightly burnt
D) Only A&B
Metering Strategy
Approaches used by companies to measure and charge for services based on usage or consumption.
Doll Accessories
Items designed to complement or enhance the play value or display of dolls, such as clothing, furniture, or vehicles.
- Recognize examples of "metering" strategy in various industries.
Verified Answer
CH
Cassie HerranJun 16, 2024
Final Answer :
D
Explanation :
Metering strategy involves selling one product at a low margin or giving it away for free to boost the sales of complementary products or services at high margins. Both A (selling dolls at cost to boost sales of high-margin accessories) and B (offering free phones to charge high prices per call) are examples of this strategy.
Learning Objectives
- Recognize examples of "metering" strategy in various industries.