What is a revenue model? Identify four major revenue models
What will be an ideal response?
A revenue model describes how the organization or the EC project will generate revenue. Major revenue models include sales, transaction fees, subscription fees, advertising fees, affiliate fees, licensing fees, and other revenue sources. The sales revenue model occurs when companies generate revenue from selling merchandise or services over their Web sites. The transaction fee revenue model occurs when the company receives a commission based on the volume of transactions made, or transaction fees can be levied per transaction. With the subscription fee revenue model, customers pay a fixed amount, usually monthly, to get some type of service. With the advertising fees model, companies charge others for allowing them to place a banner on their sites. With the affiliate fees model, companies receive commissions for referring customers to others' Web sites. The licensing fees model assesses an annual fee or a per usage fee. Other revenue sources include charging people to play games or watch sports events.
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According to the model of the consumer decision process, the environmental forces that affect the consumer decision process include the value proposition, distribution, and marketing communications.
Answer the following statement true (T) or false (F)
The specific form of research that attempts to develop new or improved products is called _________.
A. basic research B. applied research C. innovative research D. scientific research
Garry, a financial manager at AtoZ technologies, wants to know when his firm will need to arrange for short-term financing and when the firm is likely to have surplus cash available to pay off loans or to invest in short-term liquid assets. These concerns suggest that Garry would want to develop a _____.
A. cash budget B. pro forma income statement C. sales forecast D. projected balance sheet
Etruscan Railing CompanyEtruscan Railing Company makes railing that is used in sports arenas, nursing home corridors, queue houses at amusement parks, and many other places that are not as obvious. Its railing is molded into bicycle racks. You may also see city governments using the railing to make walkways over ravines and creek banks safer for pedestrian traffic. Hospitals also use the railing in their physical therapy departments, to keep the lines straight in the hospital cafeteria, and to prevent patients from falling out of hospital beds.Refer to Etruscan Railing Company. Etruscan Railing sells:
A. consumer products B. business products C. supplies D. consumer and business products E. major equipment