What is an appropriate method to encourage the demand for this service?

A service provider is launching a new service.

What is an appropriate method to encourage the demand for this service?
A . Introduce a freeze period before the deadline.
B . Add a cancellation fee to the order.
C . Set an early-bird price.
D . Increase the overall price of the service.

View Answer

Answer: C

Explanation:

to create incentives that encourage early adoption and generate demand. An early-bird pricing strategy is particularly effective in this context.

Early-Bird Price:

Setting an early-bird price provides a discount or special pricing for those who sign up or purchase the service early. This strategy creates a sense of urgency and encourages early adoption, which can help in gaining initial traction for the service.

Reference: ITIL 4 recommends using pricing strategies as a way to manage demand, particularly when launching new services (Drive Stakeholder Value, Section 5.4.3).

Incorrect Options:

A: Introducing a freeze period before the deadline can create urgency but might also cause frustration if customers feel pressured.

B: Adding a cancellation fee could discourage customers rather than encourage demand, as it adds a potential cost burden.

D: Increasing the overall price generally decreases demand rather than encouraging it, especially for new services.

Conclusion:

The most appropriate method to encourage demand for a new service is to set an early-bird price, making option C the correct answer.