The Spotify music streaming service has several price tiers for its product. There is Spotify Free, which provides access to over 50 million songs, along with advertisements, at no charge. There is Spotify Premium Individual, which provides access to over 50 million songs, with no advertisements, at $9.99 per month.

(a) What price-segmentation fence is being used here? Explain what makes it an effective price-segmentation fence in this situation. 

(b) The company also offers Spotify Premium Duo, which provides two accounts with access to over 50 million songs and no advertising, for $12.99 per month. What price-segmentation fence is being used here? Explain what makes it an effective price-segmentation fence.

Answer rating: 100% (QA)

a What pricesegmentation fence is being used here Explain what makes it an effective pricesegmentation fence in this situation Price segmentation involves charging different prices to different custom... View the full answer