When the New York Times Switched to an Online-Paid Access

question 7

Multiple Choice

When the New York Times switched to an online-paid access model for reading articles on their website, they initially felt that customers would pay $45.00 a month for unlimited access. From here, they worked backwards to ensure they were going to be profitable after paying all of the necessary IT, reporters, and administrative costs. The New York Times engaged in:

• A)Cost-plus and percentage-of-cost pricing
• B)Target pricing
• C)Cost-plus and fixed fee pricing
• D)Penetration pricing

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