When a company offers video-game consoles at a steep discount, but charges customers high fees for games, they are operating on a Blank______ business model.Multiple choice question.pay-as-you-gowholesalerazor–razor blademotivator–motivation
Question
When a company offers video-game consoles at a steep discount, but charges customers high fees for games, they are operating on a Blank______ business model.Multiple choice question.pay-as-you-gowholesalerazor–razor blademotivator–motivation
Solution
The company is operating on a "razor–razor blade" business model. This model is based on selling a primary product at a low price (or even giving it away) to drive sales of a related product. In this case, the video-game console is the "razor," sold at a steep discount, and the games are the "razor blades," sold at high fees.
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