Description of the illustration pricing_structure.gif

This figure shows how charge offers and discount offers are organized into bundles and packages with associated terms. The figure has two charge offers: one for a digital textbook service with a monthly charge and one for an online tutoring service with a usage charge. The figure also has one discount offer, for one free lesson.

The charge offer for digital textbooks is added to a bundle which is associated with terms that specify a monthly commitment, free termination, and automatic renewal. The charge offer for online tutoring and the discount offer are added to a second bundle which is associated with terms that specify a monthly commitment, free termination, and automatic renewal.

The bundle for the textbook service is added to two packages: a basic package with just the textbook bundle and a promo package with the textbook bundle and the discounted online tutoring bundle.

Each package is associated with terms which replace the bundle terms. The terms for the basic package specify a 4 month commitment, a $10 termination fee, and automatic renewal. The terms for the promo package specify an 8 month commitment, a $5 termination fee, and no renewal.