1. Explain how pricing is viewed in different ways. Be specific.
Pricing is viewed as variable, value, variety, virtual and visible.
Pricing is viewed as a variable, such as varying the payment's components, what is
being paid for, payment time, the payment terms, and the mode of payment.
The value is the customer's willingness to pay for a particular product.
There are many varieties of pricing. Based on the quality of the product, the price will
change. Occasionally based on the competition, the price of the product will vary.
Pricing is virtual, and the reason is quickest and easiest changed based on the market
conditions.
Lastly, the pricing has the nature visible. The product buyer is aware of the value,
image, availability of a product, and exclusivity.
2. Identify the five revenue models for social media start-ups.
The first revenue model is the freemium model, which offers some essential services. It
charges the premium services for payment methods with advanced features based on
an annual membership basis.
Second is the Affiliate model, which earns money through the website of affiliated
companies, sales to another party, driving traffic, leads, and more. The online retailers
mostly conduct the affiliated programs.
Next is the Subscription model, which is earning money by collecting the fees from
subscribers who use or avail of products or services for a fixed period. It helps to make
a long-term relationship with buyers.
Then the model of the virtual goods, which is through collecting the amount from the
user for virtual goods such as cashback, and credit points, on a website or in-game.
Lastly is the Advertising model, which sells the advertisement against the website,
which has heavy traffic. It means more people visit the website frequently, and the
advertisement quickly reaches more people. It helps to earn more money.