ibps-so 2024 · Question 194 of 209

‘Elite Fitness Club’ charges its members a mandatory annual registration fee of ₹5,000, and additionally, members must pay ₹200 for every personal training session they attend. Which of the following statements accurately describes this pricing strategy?

AThe ₹5,000 fee represents the marginal cost of the service
BThis is a captive-product pricing strategy where the gym is the main product
CThe fixed fee (₹5,000) aims to capture consumer surplus, while the usage fee (₹200) covers variable costsCorrect
DThis strategy is only effective if the price elasticity of demand for personal training is perfectly inelastic
EThe primary goal of the fixed fee is to discourage infrequent users from joining.

Answer: C. The fixed fee (₹5,000) aims to capture consumer surplus, while the usage fee (₹200) covers variable costs

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Source: IBPS SO Marketing Officer Mains Memory Based 2024 - Adda247 · memory-based

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ibps-so 2024 · Question 194 of 209

AThe ₹5,000 fee represents the marginal cost of the service
BThis is a captive-product pricing strategy where the gym is the main product
CThe fixed fee (₹5,000) aims to capture consumer surplus, while the usage fee (₹200) covers variable costsCorrect
DThis strategy is only effective if the price elasticity of demand for personal training is perfectly inelastic
EThe primary goal of the fixed fee is to discourage infrequent users from joining.

Official answer key verified. Detailed explanation coming soon.

Source: IBPS SO Marketing Officer Mains Memory Based 2024 - Adda247 · memory-based

Practice the full ibps-so 2024 paper

Timed test with all 209 questions, just like the real exam.