Coursera | Marketing in a Digital World

Module 4 Review Quiz >> Marketing in a Digital World

Module 4 Review Quiz >> Marketing in a Digital World

1. Which one of these is NOT one of the pricing concepts mentioned in the course?

  • Price elasticity
  • Price fairness
  • Reference prices
  • Break-even analysis

2. Making a right pricing decision for a firm is crucial because:

  • It creates value for customers
  • It helps the firm be unique
  • It provides a firm with a sustainable competitive advantage
  • It affects a firm’s profitability

3. Which of these factors should firms consider when setting a price?

  • Cost of production
  • Customer’s willingness to pay
  • Price of competing products
  • All of the above

4. What is the primary reason that the Freemium model is more beneficial when it is applied to digital products or services?

  • The fact that the marginal cost of adding a new user is close to zero makes it more effective
  • It is true because Freemium’s free options provide consumers with so much value that they do not have to purchase the premium version
  • Because the 5% Rule of Thumb applies to those products
  • Economic value has a direct positive association with the intention to purchase premium offerings

5. Freemium models are commonly employed in which of the following categories?

  • Smartphone apps
  • Social media and communication platforms
  • Software
  • All of the above

6. What happens if a firm sets its prices too high?

  • The firm may lose potential revenue
  • The firm may lose potential sales
  • The firm will be less profitable
  • All of the above

7. Pay what you want (PWYW) strategy is a good way to maximize a firm’s profit.

  • True
  • False

8. Which statement about Pay What You Want (PWYW) pricing strategy below is CORRECT?

  • A firm using PWYW strategy will set a reference and a minimum required price and customers are free to pay more than those prices.
  • This pricing strategy is considered sustainable and many firms may benefit from using it.
  • In this strategy, a firm may suggest a price. However, customers can get the product at any price they wish, even at no cost.
  • In this strategy, customers will receive a product or service as long as they pay something.

9. What are the possible ways for Freemium model businesses to convert their Free subscribers into Premium subscribers?

  • Freemium platforms should offer more benefits to their premium members
  • They need to keep adding new features to make their offerings more appealing
  • Freemium businesses need to be sticky to make it difficult for customers to switch to competitors
  • All of the above

10. According to the reading, Gu, X., Kannan, P. K., & Ma, L. (2019, March 20). How companies can get the most out of a freemium business model. Harvard Business Review, how does a firm implement Versioning strategy in the Software-as-a-Service (SaaS) space?

  • By extending the premium product lines according to customer behavior and their response, to elevate their willingness to pay for premium offerings
  • By encouraging the Free Mentality of customers to deliver more quality benefits and features to them
  • By creating customer enjoyment to capture more value for the firm
  • By upgrading the product constantly and increasing the number of free offerings to receive more positive feedback

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