Question 1

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 2

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 3

Explain the advantages of bundled pricing and give an example.

Accepted Answer

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

Question 4

Which of the following is true about a revenue model?

Accepted Answer

A) It is the same as a business model. 
B) It is a separate planning model from the business model. 
C) It is minor component of the business model. 
D) It is a key component of the business model.

Question 5

An example of unit-priced sales is selling music in iTunes.

Accepted Answer

A) True 
 B)False

Question 6

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 7

A cell phone company offers a promotion in which it gives away a free phone to people who purchase the highest-level data usage plan.This is an example of which of the following?

Accepted Answer

A) balance subsidies 
B) promotional subsidies 
C) direct cross-subsidies 
D) risk reduction subsidies

Question 8

What revenue model mixes free basic services with premium or upgraded services?

Accepted Answer

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

Question 9

A revenue model explains how an entrepreneur will make money from delivering on the customer value proposition.

Accepted Answer

A) True 
 B)False

Question 10

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

Accepted Answer

A) True 
 B)False

Question 11

What pricing strategy packages goods together at a lower price than if they were sold separately?

Accepted Answer

A) bundled pricing 
B) discount pricing 
C) fair pricing 
D) introductory offer

Question 12

A new company can reduce the cost of goods sold by negotiating with manufacturing source.

Accepted Answer

A) True 
 B)False

Question 13

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

Question 14

A company's plan for how it will earn income and generate profits is called the ______.

Accepted Answer

A) revenue model 
B) business model 
C) revenue stream 
D) business plan

Question 15

Which revenue model measures the amount of revenue generated by the number of items sold by the company?

Accepted Answer

A) subscription 
B) unit sales 
C) data revenue 
D) intermediation

Question 16

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 17

In target-return pricing,the price is determined by which of the following?

Accepted Answer

A) the maximum amount that your customers will pay 
B) the cost of creating the product and adding a profit margin 
C) how much you have invested in your business 
D) what you need to charge to meet your company goals

Question 18

What is the first key driver of revenue?

Accepted Answer

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

Question 19

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 20

Companies may generate revenue by giving away part of their product or service.

Accepted Answer

A) True 
 B)False

Exam 9: Creating Revenue Models

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?

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

Explain the advantages of bundled pricing and give an example.

Which of the following is true about a revenue model?

An example of unit-priced sales is selling music in iTunes.

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

A cell phone company offers a promotion in which it gives away a free phone to people who purchase the highest-level data usage plan.This is an example of which of the following?

What revenue model mixes free basic services with premium or upgraded services?

A revenue model explains how an entrepreneur will make money from delivering on the customer value proposition.

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

What pricing strategy packages goods together at a lower price than if they were sold separately?

A new company can reduce the cost of goods sold by negotiating with manufacturing source.

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

A company's plan for how it will earn income and generate profits is called the ______.

Which revenue model measures the amount of revenue generated by the number of items sold by the company?

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

In target-return pricing,the price is determined by which of the following?

What is the first key driver of revenue?

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?

Companies may generate revenue by giving away part of their product or service.