QuestionQ16

Stakeholder Engagement Lifecycle (Explore, Engage, Offer, Agree, Onboard, Co-Create, Realize)

Which charging approach could be used to discourage the use of a service during periods when it is very busy?

  • A Cost
  • B Cost plus
  • C Market price
  • D Differential charging
Explanation

Differential charging applies varying rates based on factors like time of use or demand levels, allowing an organization to set higher charges during peak or high-demand periods. This higher cost during busy times acts as a disincentive, encouraging users to shift consumption to quieter periods and helping to manage capacity and demand more effectively. In contrast, cost, cost-plus, and market price charging methods are primarily aimed at cost recovery or aligning with market rates rather than actively shaping demand based on service load.

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