Which pricing model allows customers to pay based on their actual content usage?

Study for the Financial Information Associate Certificate Test. Review with flashcards and multiple choice questions. Enhance your financial knowledge with hints and detailed explanations. Be prepared for your FIA exam!

The pay-per-view pricing model is designed to charge customers based on their actual content consumption. This model allows consumers to pay for individual instances of content, such as movies or events, rather than a flat rate for access over a set period. By letting customers pay for only what they watch, it aligns the cost directly with usage, which can be appealing to those who may not want a long-term commitment or who consume content sporadically.

In contrast, the other options present different approaches to pricing. The standard license fee typically involves a one-time payment that grants access to content for an extended period, regardless of how much is consumed. The fixed annual fee charges customers the same amount regardless of how frequently they access the content, appealing to heavy users but not to those with variable consumption. Finally, the subscription model charges a recurring fee for access over a specified timeframe but does not adjust based on the individual consumption level of the customer. This can lead to customers paying for content they may not fully utilize.

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