Essentials of MIS (13th Edition)
Essentials of MIS (13th Edition)
13th Edition
ISBN: 9780134802756
Author: Kenneth C. Laudon, Jane Laudon
Publisher: PEARSON
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Chapter 7.3, Problem 3CQ1

Explanation of Solution

Tiered service model:

  • Tiered service models allow the users to choose from a small set of tiers at gradually increasing price points to get the products best matched to their needs.
  • This systems are continuously seen in the telecommunications field, exactly when it comes to wireless service, broadband internet access and digital and cable TV options.
  • For example, when a wireless company charges client’s different money based on the number of text messages, voice minutes and any other features they want, the company is using the principle of tiered service.
  • These charges also applicable for other services such as speed of individual’s internet connection and the total number of cable TV channels one has access to...

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