Business Models: Crowdsourcing & Subscription

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Questions and Answers

What is the primary feature of crowdsourcing?

Utilizing a small group of experts

Contributing by a large group of dispersed participants (correct)

Focusing on individual efforts only

Involving only offline activities

Which of the following is NOT an advantage of crowdsourcing?

Increased flexibility

Limited scalability (correct)

Improved quality

Lowered costs

What was the term 'crowdsourcing' coined to describe?

The use of technology in agriculture

Businesses using the Internet for outsourcing (correct)

The public's contribution to the Internet

The creation of virtual reality environments

Which industry has crowdsourcing NOT historically impacted?

Education Signup and view all the answers

What is the main characteristic of the subscription business model?

Requiring customers to pay a recurring fee Signup and view all the answers

Which of these was one of the pioneers of the subscription model?

Publishers of books and periodicals Signup and view all the answers

How does a subscription business model benefit brand loyalty?

By providing periodic access to products Signup and view all the answers

The term 'crowdsourcing' is a combination of which two words?

Crowd and outsourcing Signup and view all the answers

What is a key advantage of using crowdsourcing in projects?

Improved speed Signup and view all the answers

Which of the following is a historical example of crowdsourcing's use?

Open-source software development Signup and view all the answers

Which sector has NOT historically utilized the concept of crowdsourcing?

Legal services Signup and view all the answers

How does the subscription model enhance customer retention?

By ensuring brand loyalty through recurring payments Signup and view all the answers

What does crowdsourcing primarily rely on to function effectively in modern contexts?

Digital platforms Signup and view all the answers

When did the term 'crowdsourcing' first come into use?

2006 Signup and view all the answers

What type of intervals are commonly associated with subscription services?

Recurring periods such as monthly or yearly Signup and view all the answers

Which of the following is NOT a characteristic of crowdsourcing?

Single source of funding Signup and view all the answers

What is a significant impact of crowdsourcing on modern industries?

Enhancement in scalability and flexibility of work Signup and view all the answers

Which of the following accurately describes the subscription business model?

Recurring payment for regularly scheduled access to products or services Signup and view all the answers

How has the internet influenced the concept of crowdsourcing since its inception?

By facilitating larger-scale contributions from global participants Signup and view all the answers

What historical sector can be cited as an early adopter of the subscription business model?

Book and periodical publishers Signup and view all the answers

Which effect does crowdsourcing have on the quality of contributions?

It promotes a diverse range of inputs enhancing overall quality Signup and view all the answers

What advantage does the subscription model provide businesses in building customer relationships?

It allows for a consistent, predictable revenue stream Signup and view all the answers

What type of tasks can crowdsourcing involve aside from financial contributions?

Ideas, votes, micro-tasks, and volunteer services Signup and view all the answers

What key change did crowdsourcing bring to traditional outsourcing models?

Widespread distribution of tasks to a diverse crowd Signup and view all the answers

Study Notes

Crowdsourcing

Crowdsourcing defined: involves a large group contributing goods or services, often online
Advantages: lower costs, greater speed, improved quality, increased flexibility, scalability, diversity
Wikipedia is a well-known example
Historically, crowdsourcing has been used across many industries including agriculture, genetics, science, design, art, charity and public policy.
Open-source software is a prominent example with developers globally contributing to computer programs.

Subscription Model

A customer pays a recurring price at regular intervals for access to a product or service
Pioneered by publishers in the 17th century
Used by publishers, websites, and even pharmaceutical companies
Allows for recurring sales and brand loyalty
Examples: mail order clubs, cable television, internet providers, websites, financial firms, health clubs, pharmaceuticals, renting apartments, property taxes
Freemium model is a variation (free content with premium features requiring a subscription)

Crowdsourcing

Crowdsourcing is a way to get help from a large group of people to complete a task or project.
Crowdsourcing involves people contributing or producing goods, services, ideas, votes, micro-tasks, and finances for payment or voluntarily.
Crowdsourcing leverages digital platforms for attracting participants and dividing work for cumulative results.
Crowdsourcing is not limited to online activities, and historical examples of crowdsourcing exist.
The term “crowdsourcing” was coined in 2006.
Wikipedia is a well-known example of crowdsourcing, relying on public contributions.
Crowdsourcing has been used historically in various industries, including agriculture, genetics, science, design, art, charity, and public policy.
Open-source software is an example of crowdsourcing in the tech domain.

Subscription

The subscription business model involves a recurring payment for access to a product or service.
The subscription model was pioneered by publishers of books and periodicals in the 17th century.
The subscription model is now used by various businesses, websites, and pharmaceutical companies in partnership with governments.
The subscription model transforms one-time sales into recurring sales and builds brand loyalty.
Industries using this model include mail order book sales clubs, music sales clubs, web mail providers, cable television providers, mobile network operators, internet providers, software publishers, websites, business solutions providers, financial firms, health clubs, pharmaceuticals, property taxes, newspapers, magazines, and academic journals.
The freemium model is a variation of the subscription model where a basic tier of content is free, while access to premium features is limited to paying subscribers.

Crowdsourcing

Crowdsourcing involves a large group of people contributing goods or services for payment or as volunteers.
Modern crowdsourcing often relies on digital platforms to attract and divide work between participants.
Wikipedia is a well-known example of crowdsourcing, where the public contributes to creating a virtual encyclopedia.
The term “crowdsourcing” was coined in 2006 to describe how businesses were using the internet to engage with large groups.
Crowdsourcing has historically been used in various industries, including agriculture, genetics, science, design, art, charity, and public policy.
Open-source software is a popular example of crowdsourcing, where developers from around the world contribute to computer programs.

Subscription Business Model

The subscription business model involves customers paying a recurring price for access to a product or service.
The model originated in the 17th century with publishers of books and periodicals.
It is now widely used by various businesses, websites, and even pharmaceutical companies.
Instead of selling products individually, subscriptions offer periodic access to a product or service.
This model can generate recurring sales and build brand loyalty.
Industries that use this model include mail order clubs, web mail providers, cable television, providers with digital catalogs, mobile network operators, internet providers, software publishers, websites, business solutions providers, financial firms, health clubs, pharmaceuticals, apartment rentals, and traditional publications.
The freemium model is a common variation of the subscription model, where the first level of content is free, but access to premium features is limited to paying subscribers.

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Description

Explore the concepts of crowdsourcing and subscription models in this quiz. Learn how these methods have evolved and their applications across various industries. Test your knowledge on examples, advantages, and historical context of these business strategies.