Podcast
Questions and Answers
What does the low-touch business model typically require from customers to save costs?
What does the low-touch business model typically require from customers to save costs?
- Customers must pay for maintenance services.
- Customers need to assemble products themselves. (correct)
- Customers should contact customer service frequently.
- Customers must purchase additional warranties.
In the pay-as-you-go model, how is the billing determined?
In the pay-as-you-go model, how is the billing determined?
- Customers are charged based on actual usage at the end of the billing period. (correct)
- Customers pre-pay for a set amount of usage.
- Customers only pay during peak usage times.
- Customers pay a fixed monthly fee regardless of usage.
What is a primary revenue source for marketplace business models?
What is a primary revenue source for marketplace business models?
- Charging for product returns.
- Commissions from affiliate marketing.
- Selling user data for profit.
- Fees collected from successful transactions. (correct)
Which of the following best defines the razor blade business model?
Which of the following best defines the razor blade business model?
What characterizes the reverse razor blade model?
What characterizes the reverse razor blade model?
A key aspect of the marketplace model is that it provides tools for what purpose?
A key aspect of the marketplace model is that it provides tools for what purpose?
In a low-touch business model, companies like IKEA require customers to do what?
In a low-touch business model, companies like IKEA require customers to do what?
What is a common misconception about the pay-as-you-go model?
What is a common misconception about the pay-as-you-go model?
What is a key characteristic of the crowdsourcing business model?
What is a key characteristic of the crowdsourcing business model?
Which of the following best describes disintermediation?
Which of the following best describes disintermediation?
What is fractionalization in a business model?
What is fractionalization in a business model?
What is typically NOT associated with the customization business model?
What is typically NOT associated with the customization business model?
Which of the following describes a low-touch business model?
Which of the following describes a low-touch business model?
In what way is the marketplace business model unique?
In what way is the marketplace business model unique?
What is one advantage of disintermediation?
What is one advantage of disintermediation?
Which of the following is NOT typically a feature of the fractionalization model?
Which of the following is NOT typically a feature of the fractionalization model?
What distinguishes a freemium business model from a free trial?
What distinguishes a freemium business model from a free trial?
In leasing, what is a crucial aspect that differentiates it from fractionalization?
In leasing, what is a crucial aspect that differentiates it from fractionalization?
Which statement best describes the low-touch business model?
Which statement best describes the low-touch business model?
What is a primary characteristic of a marketplace business model?
What is a primary characteristic of a marketplace business model?
Which of the following is NOT a characteristic of the freemium model?
Which of the following is NOT a characteristic of the freemium model?
In a low-touch business model, companies typically aim to:
In a low-touch business model, companies typically aim to:
How does leasing fundamentally differ from fractionalization?
How does leasing fundamentally differ from fractionalization?
What is an example of a business using a freemium model?
What is an example of a business using a freemium model?
Flashcards are hidden until you start studying
Study Notes
Low-Touch Business Model
- Customers are encouraged to do some tasks independently or purchase additional services to save costs.
- IKEA exemplifies this model by requiring customers to assemble purchased furniture.
Marketplace Model
- Allows sellers to list items for sale while providing tools for buyer-seller connections.
- Revenue sources include transaction fees, advertising services for sellers, and insurance options.
- Common examples are e-commerce platforms like Lazada and Shopee.
Pay-As-You-Go Model
- Customers are billed based on actual usage rather than pre-purchasing services.
- Predominantly found in home utilities, such as water supply companies.
Razor Blade Model
- Products are sold at low prices to drive volume sales of high-margin add-ons.
- Gillette illustrates this model with inexpensive razors and costly replacement blades.
Reverse Razor Blade Model
- Offers a high-margin primary product while promoting sales of a lower-margin companion product.
Franchising Model
- Involves selling the operational framework of a business to entrepreneurs.
- Common in the restaurant sector, with Jollibee and 7-11 as prominent examples.
Freemium Model
- Basic product or service access is free, with charges for premium features or advanced functions.
- Differentiates from free trials by allowing unlimited basic feature use without time restrictions.
Leasing Model
- Customers rent products for a specified period, returning them at the lease’s conclusion.
- Rent-a-car services exemplify this model.
Concierge/Customization Model
- Offers personalized products or services, enhancing the unique value of each transaction.
- Customization seen in Nike’s sneakers, allowing buyers to design their footwear.
Crowdsourcing Model
- Engages a large audience to contribute content, often paired with advertising revenue models.
- Users on platforms like Patreon illustrate effective crowdsourcing.
Disintermediation Model
- Eliminates intermediaries in the supply chain, enabling direct consumer sales.
- Dell serves as an example, allowing customers to purchase computer parts directly.
Fractionalization Model
- Sells portions of a product instead of the whole item.
- Disney Vacation Club showcases this model by selling limited-time access to vacation homes.
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
