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In which of the following situations is the cost of providing a service included in the price?

a) low-touch
b) high-touch
c) flexible return policy
d) market segmentation

User Rahbek
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1 Answer

4 votes

Final Answer:

A flexible return policy typically includes the cost of providing the service within the price.

thus correct option is c) flexible return policy

Step-by-step explanation:

A flexible return policy typically includes the cost of providing the service within the price. When a company offers a flexible return policy, it accounts for potential returns or exchanges in the pricing structure. This approach spreads the cost of accommodating returns across all products, ensuring it's factored into the initial price. Customers perceive this as added value, though the cost is essentially embedded in the product's price.

In contrast, low-touch and high-touch services, market segmentation strategies primarily focus on delivering distinct services or targeting specific customer segments, but they don't necessarily factor the cost of service provision directly into the price. Therefore, a flexible return policy stands out as the scenario where the cost of service provision is more explicitly included in the price structure, affecting the overall pricing strategy of the product or service.

thus correct option is c) flexible return policy

User Ramatu
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