CR doubt
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- prachi18oct
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Imagine a really simple scenario. Say that we only have two channels total in our cable world, HBO and TLC. Let's also say we have the following options:
Package: $40 for both
A la carte: $30 for HBO only; $20 for TLC only.
According to the cable industry, the package deal is cheaper. Buying both channels via the a la carte option will be $50, but the bundle is only $40.
However, if I only want HBO, the a la carte option will cost me $30, but the package will charge me $40, essentially forcing me to pay extra for this other channel that I have no interest in!
Put another way, if I don't want to reduce the number of channels I buy, and I want both HBO and TLC, the bundle is cheaper. But if I do want to reduce the number of channels I buy, then the a la carte option is cheaper. Only answer choice C addresses this issue of whether consumers will want to reduce the number of channels they buy.
Package: $40 for both
A la carte: $30 for HBO only; $20 for TLC only.
According to the cable industry, the package deal is cheaper. Buying both channels via the a la carte option will be $50, but the bundle is only $40.
However, if I only want HBO, the a la carte option will cost me $30, but the package will charge me $40, essentially forcing me to pay extra for this other channel that I have no interest in!
Put another way, if I don't want to reduce the number of channels I buy, and I want both HBO and TLC, the bundle is cheaper. But if I do want to reduce the number of channels I buy, then the a la carte option is cheaper. Only answer choice C addresses this issue of whether consumers will want to reduce the number of channels they buy.