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20 June, 10:32

TravelCheap Inc. is a car rental business that charges customers based on how many miles they put on a car on a daily basis. As result, a person who uses a car to travel from Chicago to Denver during a week is charged much more than a person who uses a car only to travel one mile to the grocery store six times a week.

TravelCheap uses a business model called:

A. freemium.

B. pay-as-you-go.

C. agency.

D. bundling.

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  1. 20 June, 12:57
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    B. pay-as-you-go.

    Explanation:

    Pay-as-you-go business model is one in which the consumer is only charged for what he utilised, the more he uses a product the more he will pay.

    This business model provides great satisfaction for the customer because he perceives it as a fair payment system where there is no overcharging for use of a product.

    TravelCheap Inc. is using pay-as-you-go. Customers that rent cars for long journeys pay more than those that rent for just a mile drive.
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