United Airlines prices its tickets so that it is less expensive to travel between midnight and 5:00 a.m. than during the day, when there is heavy business travel. This illustrates ____ pricing. a. secondary markup b. demand-based c. cost-plus d. seasonal e. competition-based

Respuesta :

Answer:

The correct option is B,demand-based

Explanation:

Demand-based is the pricing strategy of hiking prices at busy at peak periods and charging modest prices at off-peak periods.

The reason for charging higher prices at peak periods the traffic at that time stretches the resources of the business,hence a little extra price is added as contribution towards maintenance of existing facilities and possible upgrade in the near future.

This approach is also known with telecommunication firms such as Vodafone and MTN.