A Study of Challenges In Pricing Financial Services |

ABSTRACT:

There are several limitations associated with the use ofcost-based pricing in financial services. Since different customers may utilizea financial service to different degrees, use of an average cost to determinethe price charged to all customers may be somewhat unfair. Customers thatrarely utilize a service would pay an equal price to those that heavily utilizeit. As a result, the light users might subsidize the heavy users of theservice. This may be remedied by charging customers on a per usage basis.