What are some disadvantages of making the decision to use a tiered service approach at Eligin Technology Products

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Gerardo Mata

Business

26 July, 13:56

What are some disadvantages of making the decision to use a tiered service approach at Eligin Technology Products

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Annika Ramos · Answer 1

There are several drawbacks involved with the use of the tiered pricing approach, such as the commitment of a buyer to the firm, a - customer relationship and a variety of benefits and services for the customer.

a) The end of year will be awarded to customers purchasing $100,000 worth of products, due to a five percent bonus offer for their sales throughout the year.

b) commitments to resolve all customer service problems in the next day turnaround time.

c) Consumers ordering goods over $500,000 will be compensated with a 10% discount and a 4-hour contribution to solving all customer service issues.