The Theory Behind Freemium Pricing Is That

question 287

Multiple Choice

The theory behind freemium pricing is that:

• A)customers perceive value in the free service and then are more willing to pay
• B)customers are 'guilted' into purchasing
• C)this model is great for companies that do not want to make money
• D)it is illegal and unethical

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Definitions:

Parol Evidence

A rule in contract law that prevents the introduction of evidence of prior or contemporaneous negotiations and agreements that contradict, modify, or vary the contractual terms of a written contract.

Integrated Contract

A contract that is considered complete and final, where all the terms are included in the document itself, precluding oral or other external agreements.

Statute of Frauds

A legal principle that requires certain types of contracts to be in writing and signed by the party being charged, to be legally enforceable.

Promisors

Individuals or entities that make a promise or agreement within a contract to perform a specified act or duty.