Your Textbook Describes a Number of E-Business Models

question 126

Multiple Choice

Your textbook describes a number of e-business models. Which of the terms below best fits the following description: "The businesses charges buyers for a product/service based on usage levels. For instance, your cell phone company may charge you based on how much data you download while accessing the Internet from your mobile device. "

• A) Utility model
• B) Freemium model
• C) Subscription model
• D) Affiliate marketing model

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Definitions:

Vertical Merger

A merger between two companies that operate at different levels within the same industry's supply chain.

Innovative Products

Products that introduce new features, functions, or designs that differ significantly from previous products and may offer new benefits to the consumer.

Larger Firms

Companies or enterprises that are significant in size, often having a large number of employees, operations, and market influence compared to smaller businesses.

Smaller Firms

Companies with a relatively small number of employees, market share, or revenue, often characterized by more flexible operations.