A method of pricing which places a price on three separate items of service such as a casket, facilities and automobiles is called ___ pricing.

A method of pricing which places a price on three separate items of service such as a casket, facilities and automobiles is called ___ pricing.

• A. Bundle pricing
• B. Dynamic pricing
• C. Functional pricing
• D. Premium pricing

Answer: (C)

Pricing items by function means setting separate prices for each service component rather than presenting one combined price. In this scenario, the casket, facilities, and automobiles are priced individually, which is characteristic of functional pricing. If it were bundle pricing, there would be a single overall price for all components together. Dynamic pricing would involve price changes based on demand or time, and premium pricing would set higher prices to signal prestige rather than itemized components.

Pricing items by function means setting separate prices for each service component rather than presenting one combined price. In this scenario, the casket, facilities, and automobiles are priced individually, which is characteristic of functional pricing. If it were bundle pricing, there would be a single overall price for all components together. Dynamic pricing would involve price changes based on demand or time, and premium pricing would set higher prices to signal prestige rather than itemized components.