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When making an ORDER for a RENEWAL, the price of the product should be set at $0.

a.true
b.false

User Josemmo
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1 Answer

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Final answer:

The statement is false as the price of a renewal order can vary. Companies may charge the full price, offer a discount, or, less commonly, make it free as part of a loyalty program. Whether the renewal costs $0 depends on the terms of the service and the company's pricing policy.

Step-by-step explanation:

When making an order for a renewal, it is not universally true that the price of the product should be set at $0. Pricing for renewals is heavily dependent on the company's pricing strategy, the terms of service, and the type of product or service being renewed. In some cases, companies do offer a renewal at no additional cost as an incentive or benefit of continued service. However, in many other instances, a renewal comes at a cost, which may be the same as the initial price or offered at a discounted rate.

For example, a software company might allow users to renew their subscription for an annual fee that is not necessarily $0. They may offer it at a reduced rate as a loyalty benefit or at full price. Conversely, if a warranty is being renewed and the terms specify a $0 fee for renewal, in that case, it would be correct to set the renewal order at $0.

User Shima
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