Zephyr Professional Practice Test

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What is a characteristic of subscription-based pricing?

Payment for individual products
Unlimited usage during the subscription period
Pricing that varies daily based on demand
Paying only for what you use

The correct answer is: Unlimited usage during the subscription period

Subscription-based pricing is characterized by offering consumers unlimited usage of a service or access to products during the subscription period for a predetermined fee. This model allows customers to pay a recurring price to enjoy the benefits without being charged on a per-use basis. This can apply to various sectors, such as streaming services, software, and membership clubs, where users can access content or services as frequently as they desire as long as their subscription is active. The other options reflect different pricing strategies: paying for individual products suggests a transactional model rather than a subscription; pricing that varies daily based on demand aligns more with variable pricing models, often seen in marketplaces or airlines; and paying only for what you use is indicative of pay-per-use pricing. These contrast with the essence of subscription-based pricing, which emphasizes ongoing access for a flat rate over a set period.