Business Models Quiz

What is the primary purpose of a business model?

• To outline the company's marketing strategy

• To describe how a company creates, delivers, and captures value

• To set the company's financial goals

• To define the company's organizational structure

Which of the following is an example of the Razor-Razor Blade model?

• Netflix subscriptions

• Electric toothbrushes and replacement heads

• Spotify free and premium versions

• Amazon Prime membership

What is a key characteristic of the Subscription model?

• Free basic version

• One-time purchase

• Recurring revenue

• Usage-based pricing

How does the Pay-as-you-go model benefit customers?

• By providing volume-based discounts

• By bundling products together

• By offering a free basic version

• By allowing payment based on actual usage

What is the main goal of the Freemium model?

• To offer products in bulk

• To provide a free version to attract users and convert them to paying customers

• To charge customers based on their usage

• To sell products through agents

In the Wholesale model, who are the primary customers?

• Online platforms

• Freelancers

• Retailers and distributors

• Individual consumers

What is a key feature of the Agency model?

• Agents are direct employees of the principal

• Agents operate independently and earn commissions

• Agents offer free basic versions of products

• Agents purchase products in bulk

What is the primary advantage of the Bundling model for customers?

• Access to free basic versions

• Payment based on usage

• Lower prices for combined products

• Commission-based pricing

Which industry commonly uses the Bundling model?

• Insurance

• Telecommunications

• Automotive

• Real estate

How does the Bundling model benefit businesses?

• By charging based on actual usage

• By offering free versions to attract users

• By reducing barriers to entry

• By increasing sales volumes through perceived value