Aguilar Industries has produced a new piece of technology that will monitor the soil moisture in a user's garden and send a notification to an app on the user's phone when it is time to water their plants. The goal of this inexpensive technology is to entice users to purchase Aguilar's more expensive automated watering system, so that they can trigger the watering process from the app on their phones. Which business model is most likely to help Aguilar Industries accomplish its goals?
A) agency
B) wholesale
C) pay-as-you-go
D) freemium

Question

Quizplus · Accepted Answer

The freemium (free + premium) business model provides the basic features of a product or service free of charge, but charges the user for premium services such as advanced features or add-ons. If Aguilar Industries wants to entice users into purchasing its automated watering system (a premium service), it could first give away the inexpensive soil monitoring technology then charge a higher price for the premium upgrade.

Aguilar Industries Has Produced a New Piece of Technology That