Which of the following actions of a firm suggests that it uses the freemium approach for applying freeconomics?
A) It provides free services to customers and gets paid for it by third parties.
B) It reduces the sale price of one item in order to sell something else of value.
C) It distributes products to customers without an appreciable cost to anyone.
D) It offers basic services for free but charges a premium for special features.
E) It allows people to participate and collaborate to create something of value.

Question

Quizplus · Accepted Answer

The freemium approach involves offering basic services for free, but charging a premium for additional features. This is often used in software or mobile apps, where users can use the basic version for free, but have to pay for additional functionality. Choice A describes an advertising-based business model, while Choice B is an example of bundling. Choice C may refer to a cost-leadership strategy, while Choice E is related to crowdsourcing.

Which of the Following Actions of a Firm Suggests That