2. What other factors, besides costs, should Pagoda consider?

How would you weight these factors? Given these options, how might you use a weighted-point evaluation system to evaluate the two options? Pagoda.com is an Internet service provider (ISP) that caters to individual consumers and small businesses who require a high level of service and are willing to pay a premium for it.

Specifically, Pagoda.com offers state-of-the-art e-mail applications and web-building software, as well as plenty of storage space and fast access via its high-speed servers.

Marketing vice president Jerry Hunter puts it this way:

“There are a lot of companies out there distributing free CDs and promising the cheapest Internet access. But what do you get for your money? Slow or no access, a mailbox full of spam, and an endless stream of system crashes. And I won’t even mention the lack of support if you have a technical question! For a few dollars more a month, we give our customers the environment they need to be productive—

without having to think about whether or not they can retrieve their e-mail, or whether their Web site has crashed.

It’s no surprise, then, that we have the highest customer satisfaction and retention rates in the industry.”