Question 1

The revenue model associated with giving permission to other parties to use protected intellectual property in exchange for fees is called the ______.

Accepted Answer

A) fee revenue model 
B) licensing revenue model 
C) intellectual property model 
D) intermediation model

Question 2

Brent has designed a barbeque smoker that will sell for $29.99 and appeal to campers.The product uses a disposable unit that will protect the food during smoking and make cleanup easier,which customers can replace after 8-10 uses.What revenue model is Brent planning on?

Accepted Answer

A) intermediation 
B) razor-and-razor-blade 
C) intangible sales 
D) subscription

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 revenue driver is Kelly addressing by doing this?

Accepted Answer

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

Question 4

How do free newspapers like Metro gain revenue from free products under the freemium model?

Accepted Answer

A) They operate as nonprofits. 
B) They are sponsored by wealthy patrons. 
C) They are paid to feature advertisements. 
D) They get donations from users.

Question 5

Which of the following refers to pricing a product or service above its market value to pay for the loss of giving a product away for free or below its market value?

Accepted Answer

A) direct cross-subsidies 
B) price plus 
C) freemium plus 
D) BOGO pricing

Question 6

In general,reducing operating costs is the most effective way of yielding long-term gains.

Accepted Answer

A) True 
 B)False

Question 7

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

The answer of Consider that you have designed an ergonomic...

Question 8

Explain the advantages of bundled pricing and give an example.

Accepted Answer

The answer of Explain the advantages of bundled pricing and...

Question 9

Carol sells a downloadable product that uses bar codes to conduct comparison shopping.Carol's product is an example of ______.

Accepted Answer

A) a tangible revenue model 
B) an intangible sale 
C) a franchising revenue model 
D) a licensing revenue model

Question 10

What is the primary source of revenue for Skype,the company that offers online video and phone service?

Accepted Answer

A) the fees it charges for a connection 
B) the fees it charges for Skypeout,the service that calls land lines and cell phones 
C) the fees it charges for long-distance communications 
D) its monthly subscription fee

Question 11

When determining you pricing strategy,your goal should always be long-term fixed pricing.

Accepted Answer

A) True 
 B)False

Question 12

A grocery store offers cans of vegetables at 10 for $10.This is most likely which of the following pricing strategies?

Accepted Answer

A) skimming 
B) fair pricing 
C) psychological pricing 
D) customer-led pricing

Question 13

Priceline,which offers passengers a chance to name their own price for flights,is an example of a competition-led pricing technique.

Accepted Answer

A) True 
 B)False

Question 14

Imagine that you are offering an Internet-based software service that helps people plan group projects and calendar events.Describe a freemium program to attract customers to your service.

Accepted Answer

The answer of Imagine that you are offering an Internet-based...

Question 15

Cost-led pricing refers to which of the following pricing calculations?

Accepted Answer

A) calculating the cost of manufacturing and delivering the product and adding a profit margin 
B) calculating the cost based on how much profit you have targeted in your business plan 
C) calculating the price based on the maximum price a customer will pay 
D) calculating the price based on competitive products

Question 16

The cost of running the business,including rent,utilities,administration,salaries,marketing,etc.,is referred to as which of the following?

Accepted Answer

A) cost of goods sold 
B) operating expenses 
C) infrastructure costs 
D) nonsales costs

Question 17

Define costs of goods sold and operating expenses and explain the differences between them.

Accepted Answer

The answer of Define costs of goods sold and operating...

Question 18

In what pricing strategy customers are asked how much they would pay for the product?

Accepted Answer

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

Question 19

In what type of pricing customers are encouraged to believe that the product is less expensive than it really is?

Accepted Answer

A) skimming 
B) fair pricing 
C) psychological pricing 
D) customer-led pricing

Question 20

In what pricing strategy a new product is offered for a heavily discounted price (or free)to attract more customers?

Accepted Answer

A) introductory offer 
B) skimming 
C) customer-led pricing 
D) psychological pricing

Exam 9: Creating Revenue Models

The revenue model associated with giving permission to other parties to use protected intellectual property in exchange for fees is called the ______.

Brent has designed a barbeque smoker that will sell for $29.99 and appeal to campers.The product uses a disposable unit that will protect the food during smoking and make cleanup easier,which customers can replace after 8-10 uses.What revenue model is Brent planning on?

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 revenue driver is Kelly addressing by doing this?

How do free newspapers like Metro gain revenue from free products under the freemium model?

Which of the following refers to pricing a product or service above its market value to pay for the loss of giving a product away for free or below its market value?

In general,reducing operating costs is the most effective way of yielding long-term gains.

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.

Explain the advantages of bundled pricing and give an example.

Carol sells a downloadable product that uses bar codes to conduct comparison shopping.Carol's product is an example of ______.

What is the primary source of revenue for Skype,the company that offers online video and phone service?

When determining you pricing strategy,your goal should always be long-term fixed pricing.

A grocery store offers cans of vegetables at 10 for $10.This is most likely which of the following pricing strategies?

Priceline,which offers passengers a chance to name their own price for flights,is an example of a competition-led pricing technique.

Imagine that you are offering an Internet-based software service that helps people plan group projects and calendar events.Describe a freemium program to attract customers to your service.

Cost-led pricing refers to which of the following pricing calculations?

The cost of running the business,including rent,utilities,administration,salaries,marketing,etc.,is referred to as which of the following?

Define costs of goods sold and operating expenses and explain the differences between them.

In what pricing strategy customers are asked how much they would pay for the product?

In what type of pricing customers are encouraged to believe that the product is less expensive than it really is?

In what pricing strategy a new product is offered for a heavily discounted price (or free) to attract more customers?