Chapter 9 Flashcards
(19 cards)
What is the key component of the business model which identifies how the company will earn income and make profits?
revenue model
What is the income gained from sales of goods or services?
revenue
What model is described by the number of items (units) sold by a company?
Unit sales revenue
What is the variation of the unit sales model?
Razor-and-razor-blade
What is a common way magazines and newspapers make revenue?
Advertising model
Airbnb is a type of business that generates revenues through the ______ revenue model.
intermediation
Why is the freemium revenue model becoming more popular?
It encourages widespread customer adoption.
One way the free newspaper Metro makes money is ______.
featuring major events
What is the pricing of a product or service above its market value to pay for loss of giving away a product or service for free or below market value?
direct cross-subsidies
What is the value of goods sold when a sale takes place?
cost of goods sold
What are the costs of running a business-such as rent, utilities, administration, and salaries-referred to as?
operating expenses
What is the type of pricing strategy when prices are guided by other businesses selling the same or very similar products?
competition-led
What is a loss leader?
offering a product below cost
What is the type of pricing strategy involving calculating all the costs involved in manufacturing or delivering the product or service, plus all other expenses, plus expected profit based on sales volume?
cost-led
What is the point where revenue equals cost?
breakeven
SELECT ALL THAT APPLY. Meaningful advertising revenue generated in the digital world is dependent on which of the following?
attracting traffic and developing a dominant niche
SELECT ALL THAT APPLY. What are key revenue drivers?
customer, price, and frequency
The licensing revenue model is where companies generate revenue by selling high-quality, exclusive, valuable information to other parties.
False
Multiparty business is a type of free model where one party is given a product or service for free while another party must pay for it.
True
