Lica Inc., a software company, initially offers a small percentage of its services for free. Once customers get familiar with the services, they decide to purchase them at a premium. The company makes money on the add-on services like application downloads, messenger updates, and other online services. Other companies pay Lica for advertising through these portals. Which of the following innovative strategies has been adopted by the company?
A)A combination of freemium and third-party strategies
B)A cross-sell strategy
C)A combination of high-end and low-end disruptive strategies
D)A bundling strategy

Question

Quizplus · Accepted Answer

Lica Inc. has adopted a combination of freemium and third-party strategies. They offer a small percentage of their services for free (freemium strategy) to attract customers and then make money through add-on services (upselling) and advertising (third-party strategy).

Lica Inc, a Software Company, Initially Offers a Small Percentage of of Its