Alternative pricing structure or policies

Different types of pricing may be possible on the Internet, particularly for digital, downloadable products. Software and music have traditionally been sold for a continuous right to use. The Internet offers new options such as payment per use, rental at a fixed cost per month or a lease arrangement. Bundling options may also be more possible. The use of applications service providers (ASPs) to deliver service such as web site traffic monitoring also gives new methods of volume pricing. Web analytics companies such as Indextools (www.indextools.com) and Webtrends (www.webtrendslive.com) charge in price bands based on the number of visitors to the purchaser's site. Further pricing options which could be varied online include:

• add-ons and extra products and services

• guarantees and warranties

• refund policies

• order cancellation terms.

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