Types of Business Models

Which business model involves converting raw materials into products and selling to distributors, retailers or directly to consumers.

• Retailer model

• Manufacturer model

• Fee-for-service model

• Subscription model

In the fee-for-service model, how does a business earn revenue?

• By selling products at a markup

• By charging a set fee for a specific service

• By leasing equipment

• By offering free trials

Which of the following businesses is most likely to use a fee-for-service model?

• A clothing store

• Hair stylists

• A toy manufacturer

• A book publisher

Which business model makes up many of the businesses you shop at day to day, like grocery stores.

• Retailer model

• Manufacturer model

• Fee-for-service model

• Direct sales model

Which business model sells one product at a low price in order to increase sales of a complementary good.

• Leasing Model

• Distribution Model

• Freemium model

• Razor Blades Model

Which business model involves customers making a recurring payment for ongoing access to a service or product.

• Leasing Model

• Distribution Model

• Freemium model

• Subscription Model

Which business model involves selling two or more products together a lower price than they would would be separately.

• Bundling Model

• Distribution Model

• Freemium model

• Subscription Model

Which business model would a bike rental companies use to charge a per-mile fee each time a customers rides a bike.

• Bundling Model

• Product-as-a-Service Model

• Freemium model

• Subscription Model

Which business model example is to rent machinery like backhoes, augers and dozers to individuals for their home construction projects.

• Bundling Model

• Product-as-a-Service Model

• Leasing Model

• Subscription Model

Which business model allows customers to use parts of a product or service for free but must pay for access to more advanced features.

• Bundling Model

• Product-as-a-Service Model

• Leasing Model

• Freemium model