What type of pricing should be configured for a service that varies depending on the selected bandwidth and network?

Study for the Industries CPQ Certification Exam with flashcards and multiple choice questions. Get ready for your exam with detailed explanations and practical insights!

The correct choice, which is attribute-based pricing, is suitable for a service where costs fluctuate based on specific characteristics such as selected bandwidth and network options. This pricing model allows for customizable pricing structures that take into account the various attributes or parameters associated with the service. Each combination of attributes can lead to a different price, effectively reflecting the variations in service demand or delivery conditions.

In this scenario, since the pricing depends on specific selections made by the user, such as bandwidth levels and network types, it is essential to implement a model where each attribute contributes to the overall pricing. This approach not only accommodates the variability but also ensures that customers are only charged based on their specific preferences and selections.

Other pricing models like flat rate pricing could undermine the need for customization, resulting in a single price for services regardless of the variance in bandwidth or network choices, which may not represent the actual value or cost accurately. Dynamic pricing typically involves fluctuating prices based on real-time supply and demand but might not apply effectively to the structured choices of bandwidth and network attributes. Tiered pricing, while useful for services that offer different levels of service at different price points, does not accommodate the specific selections that make up the service bundle in the same way as attribute-based pricing does.

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