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19 December, 23:13

True Vibgyor Inc. sells its e-book readers at the cost price of $15 each. However, the company makes its profits when users have to download or buy books online. Which of the following business models is True Vibgyor implementing? A) Pay-as-you-go

B) Subscription-based

C) Direct sales

D) Razor-razor-blade

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Answers (1)
  1. 20 December, 02:12
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    D. Razor - Razor - blade

    Explanation:

    A razor - razor blade business model is a type of business model that involves selling a particular product at a low price in increase sales of complementary goods. It refers to the sales of a core product of a firm at a low price with the expectation that consumer will purchase the more expensive dependent products.

    True Vibgyor selling its e-book readers at a $15 and anticipating that the firm will make its profit when the customers buy or download books online is an example of a Razor - razor blade business model.

    Hence the answer is D. Razor - Razor - blade
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