Question 1

A company prices a product at market levels but packages the product to read "introductory pricing." This would indicate which of the following pricing strategies?

Accepted Answer

A) customer-led pricing 
B) psychological pricing 
C) value-based pricing 
D) bundled pricing 
A) customer-led pricing 
B) psychological pricing 
C) value-based pricing 
D) bundled pricing

Question 2

The razor-and-razor-blade model is an example of an intermediation revenue model.

Accepted Answer

A) True 
 B)False

Question 3

Kelly charges a premium price for her marketing services.In her sales pitch, she makes sure that she distinguishes key elements of quality not offered by her competitors.What key element of revenue is Kelly addressing by doing this?

Accepted Answer

A) frequency 
B) selling price 
C) selling process 
D) customers 
A) frequency 
B) selling price 
C) selling process 
D) customers

Question 4

What are the two types of costs that should be taken into consideration when understanding the cost driver?

Accepted Answer

A) cost of goods sold and operating expenses 
B) cost of startup and cost of operations 
C) cost of pre-startup and cost of operations 
D) employee costs and infrastructure costs 
A) cost of goods sold and operating expenses 
B) cost of startup and cost of operations 
C) cost of pre-startup and cost of operations 
D) employee costs and infrastructure costs

Question 5

Consider that you have designed an ergonomic chair that reduces back strain.You want the top price for your high-quality product.Discuss what can be done to ensure that customers will buy at the higher-end price.

Accepted Answer

Emphasis should be placed on the product

Question 6

Depreciation can be thought of as:

Accepted Answer

A) the cost of wear and tear on physical assets such as equipment 
B) a discount placed on aspects of your business 
C) the result of business losses 
D) the value of used goods 
A) the cost of wear and tear on physical assets such as equipment 
B) a discount placed on aspects of your business 
C) the result of business losses 
D) the value of used goods

Question 7

In this pricing strategy, prices are guided by the price other businesses set for similar products and services:

Accepted Answer

A) customer-led pricing 
B) loss-leader pricing 
C) competition-led pricing 
D) skimming 
A) customer-led pricing 
B) loss-leader pricing 
C) competition-led pricing 
D) skimming

Question 8

What is the main reason customers are attracted to direct cross-subsidies?

Accepted Answer

A) they get two products for the price of one 
B) it eliminates the upfront cost of a product or service 
C) it is the most cost-effective model 
D) they rarely calculate the true costs 
A) they get two products for the price of one 
B) it eliminates the upfront cost of a product or service 
C) it is the most cost-effective model 
D) they rarely calculate the true costs

Question 9

The razor-and-razor-blade revenue model:

Accepted Answer

A) includes and tangible and intangible sales 
B) includes the sale of a low-cost physical product to encourage the sale of more expensive products 
C) includes a high-cost product with easy-to-replace parts 
D) includes additional products as an add-on to the sale 
A) includes and tangible and intangible sales 
B) includes the sale of a low-cost physical product to encourage the sale of more expensive products 
C) includes a high-cost product with easy-to-replace parts 
D) includes additional products as an add-on to the sale

Question 10

A revenue stream is best defined by which of the following?

Accepted Answer

A) the particular method that a business uses to gain revenue 
B) the amount of money that comes to a business, such as a "large stream" 
C) the market segments a business sells to 
D) a steady flow of income 
A) the particular method that a business uses to gain revenue 
B) the amount of money that comes to a business, such as a "large stream" 
C) the market segments a business sells to 
D) a steady flow of income

Question 11

Myhours.com offers a free individual time reporting system.However, it charges for additional users and services.This is an example of which of the following revenue models:

Accepted Answer

A) utility and usage revenue model 
B) professional revenue model 
C) freemium revenue model 
D) premium revenue model 
A) utility and usage revenue model 
B) professional revenue model 
C) freemium revenue model 
D) premium revenue model

Question 12

A hardware store offers highly discounted sale items to attract people into the store.This is an example of which kind of pricing strategy?

Accepted Answer

A) introductory offer 
B) sale pricing 
C) customer-led pricing 
D) loss leader 
A) introductory offer 
B) sale pricing 
C) customer-led pricing 
D) loss leader

Question 13

How do companies gain revenue from free products under the freemium model?

Accepted Answer

A) they operate as nonprofits 
B) they are sponsored by wealthy sponsors 
C) they have paid advertisements in their service 
D) they get donations from users 
A) they operate as nonprofits 
B) they are sponsored by wealthy sponsors 
C) they have paid advertisements in their service 
D) they get donations from users

Question 14

A business model and a revenue model mean the same thing.

Accepted Answer

A) True 
 B)False

Question 15

An advertising revenue model gets revenue through advertising products and service.

Accepted Answer

A) True 
 B)False

Question 16

Identify a product that uses a razor-and-razor-blade revenue model.Describe why it demonstrates this model.

Accepted Answer

Answers can vary but will have the chara

Question 17

Which of the following is the role of the broker in an intermediation revenue model?

Accepted Answer

A) sell to the ultimate buyer 
B) organize transactions between buyer and seller 
C) represent the buyer in legal cases 
D) represent the seller in legal cases 
A) sell to the ultimate buyer 
B) organize transactions between buyer and seller 
C) represent the buyer in legal cases 
D) represent the seller in legal cases

Question 18

Clinton owns a popular coffee shop in downtown Seattle.Rather than open up a second shop, he allows another business owner to use his company name and follow the same operations.The second business owner, in turn, pays him an initial monthly fee for operational support and the use of the company name.What revenue model does this represent?

Accepted Answer

A) intermediation model 
B) franchising model 
C) licensing model 
D) professional revenue model 
A) intermediation model 
B) franchising model 
C) licensing model 
D) professional revenue model

Question 19

A Las Vegas theater offers a free performance.There is a two-drink minimum.This is an example of what strategy?

Accepted Answer

A) value-based pricing 
B) cross subsidies 
C) multiparty 
D) utility and usage 
A) value-based pricing 
B) cross subsidies 
C) multiparty 
D) utility and usage

Question 20

Brent has designed a barbeque smoker that will sell for $29.99 and appeal to campers.The unit includes a disposable unit that will protect the food during smoking and make cleanup easier.What revenue model is Brent planning on?

Accepted Answer

A) unit sales 
B) razor and razor blade 
C) intangible sales 
D) repeat sales 
A) unit sales 
B) razor and razor blade 
C) intangible sales 
D) repeat sales

A company prices a product at market levels but packages the product to read "introductory pricing." This would indicate which of the following pricing strategies?

The razor-and-razor-blade model is an example of an intermediation revenue model.

Kelly charges a premium price for her marketing services.In her sales pitch, she makes sure that she distinguishes key elements of quality not offered by her competitors.What key element of revenue is Kelly addressing by doing this?

What are the two types of costs that should be taken into consideration when understanding the cost driver?

Consider that you have designed an ergonomic chair that reduces back strain.You want the top price for your high-quality product.Discuss what can be done to ensure that customers will buy at the higher-end price.

Depreciation can be thought of as:

In this pricing strategy, prices are guided by the price other businesses set for similar products and services:

What is the main reason customers are attracted to direct cross-subsidies?

The razor-and-razor-blade revenue model:

A revenue stream is best defined by which of the following?

Myhours.com offers a free individual time reporting system.However, it charges for additional users and services.This is an example of which of the following revenue models:

A hardware store offers highly discounted sale items to attract people into the store.This is an example of which kind of pricing strategy?

How do companies gain revenue from free products under the freemium model?

A business model and a revenue model mean the same thing.

An advertising revenue model gets revenue through advertising products and service.

Identify a product that uses a razor-and-razor-blade revenue model.Describe why it demonstrates this model.

Which of the following is the role of the broker in an intermediation revenue model?

A Las Vegas theater offers a free performance.There is a two-drink minimum.This is an example of what strategy?

Brent has designed a barbeque smoker that will sell for $29.99 and appeal to campers.The unit includes a disposable unit that will protect the food during smoking and make cleanup easier.What revenue model is Brent planning on?

Entrepreneurship: a Global Social Movement

Practicing Entrepreneurship

Developing an Entrepreneurial Mindset

Supporting Social Entrepreneurship

Generating New Ideas

Using Design Thinking

Testing and Experimenting in Markets

Building Business Models

Planning for Entrepreneurs

Learning From Failure

Bootstrapping for Resources

Financing for Startups

Developing Networks

Navigating Legal and Ip Issues

Marketing and Pitching Your Idea

Financial Statements and Projections for Startups

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Exam 10: Creating Revenue Models

A company prices a product at market levels but packages the product to read "introductory pricing." This would indicate which of the following pricing strategies?

The razor-and-razor-blade model is an example of an intermediation revenue model.

Kelly charges a premium price for her marketing services.In her sales pitch, she makes sure that she distinguishes key elements of quality not offered by her competitors.What key element of revenue is Kelly addressing by doing this?

What are the two types of costs that should be taken into consideration when understanding the cost driver?

Consider that you have designed an ergonomic chair that reduces back strain.You want the top price for your high-quality product.Discuss what can be done to ensure that customers will buy at the higher-end price.

Depreciation can be thought of as:

In this pricing strategy, prices are guided by the price other businesses set for similar products and services:

What is the main reason customers are attracted to direct cross-subsidies?

The razor-and-razor-blade revenue model:

A revenue stream is best defined by which of the following?

Myhours.com offers a free individual time reporting system.However, it charges for additional users and services.This is an example of which of the following revenue models:

A hardware store offers highly discounted sale items to attract people into the store.This is an example of which kind of pricing strategy?

How do companies gain revenue from free products under the freemium model?

A business model and a revenue model mean the same thing.

An advertising revenue model gets revenue through advertising products and service.

Identify a product that uses a razor-and-razor-blade revenue model.Describe why it demonstrates this model.

Which of the following is the role of the broker in an intermediation revenue model?

A Las Vegas theater offers a free performance.There is a two-drink minimum.This is an example of what strategy?

Brent has designed a barbeque smoker that will sell for $29.99 and appeal to campers.The unit includes a disposable unit that will protect the food during smoking and make cleanup easier.What revenue model is Brent planning on?

Entrepreneurship: a Global Social Movement

Practicing Entrepreneurship

Developing an Entrepreneurial Mindset

Supporting Social Entrepreneurship

Generating New Ideas

Using Design Thinking

Testing and Experimenting in Markets

Building Business Models

Planning for Entrepreneurs

Learning From Failure

Bootstrapping for Resources

Financing for Startups

Developing Networks

Navigating Legal and Ip Issues

Marketing and Pitching Your Idea

Financial Statements and Projections for Startups

the Pitch Deck

Filters