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Chapter 6 Price Structure > Elements of Structure - Pg. 78

78 Contextual Pricing Where a company has market power, it will impose a two-part charging system. Where it has little power, it can only offer a single-part tariff. The managerial logic behind this is intuitive: where sellers have power, they control price structures; where buyers have power (choice), they eliminate structures with which they do not feel comfortable, in favor of easy price comparison. Elements of Structure Now that we have outlined a powerful structural framework, the next question is: just what are the elements that comprise the one or two charg- ing elements? There are literally hundreds of price structure options. However, the main points of departure can be summarized into about eight buckets.