Why do subscription firms offer a free trial?
ATo convert users to paid
BTo avoid sales tax
CTo cut production cost
DTo retire old stock
Answer & Solution
Correct answer: A. To convert users to paid
A trial raises the likelihood that the customer will commit to a paid subscription.
Keep practising Strategic Cost Management and Emerging Business Models
Browse all Strategic Cost Management and Emerging Business Models questions for CA Final, or explore more Cost and Management Accounting topics.
Related questions
A sharing economy chiefly enables reuse of what?In a network effect, the value to a user depends on what?Who pioneered the subscription model in the 17th century?In a subscription business model, what does the customer pay?Why is freemium especially suited to software?Under a freemium pricing strategy, what is provided free of charge?In whole-life project appraisal, which option is typically chosen?In whole-life appraisal, how are future costs and benefits usually converted to present te