What pricing model is used by the newspaper offering different subscription rates for various user tiers?

The correct choice, which is graduated tiered pricing, refers to a subscription model often used by services like newspapers to cater to different user segments with varying needs and willingness to pay. This pricing structure allows customers to choose from multiple tiers, each offering a different set of features, benefits, or access levels. For example, a newspaper may offer a basic tier that provides limited access to articles, while higher tiers could include premium content, exclusive articles, or ad-free experiences at increased rates.

Graduated tiered pricing is particularly effective in that it acknowledges the varying value different customers place on the subscription. By dividing offerings into tiers, it becomes easier to attract a broader audience while also maximizing revenue from users willing to pay more for enhanced features.

In contrast, dynamic pricing typically fluctuates based on current market demand and other factors, flat rate pricing offers a single price for all users regardless of consumption, and per-user pricing is based on a fee that is charged for each individual user. All these models do not align with the tiered approach, which allows for a more structured and segmented pricing strategy catering to diverse user tiers.