Question

Quote and transact orders for both traditional resale and subscription and annuity orders. What is a key aspect of managing subscription and annuity orders in a business setting?

a) One-time transactions
b) Long-term customer commitments
c) Seasonal sales promotions
d) Variable pricing structures

Answer 1

A key aspect of managing subscription and annuity orders in a business setting is long-term customer commitments. The option (B) is correct.

Step-by-step explanation:

A key aspect of managing subscription and annuity orders in a business setting is long-term customer commitments. Unlike traditional resale orders that involve one-time transactions, subscription and annuity orders require customers to commit to recurring payments or services over an extended period.

For example, a streaming service like Netflix offers subscription plans where customers pay a monthly fee to access unlimited movies and TV shows. The company relies on long-term customer commitments to maintain a steady revenue stream.

Variable pricing structures and seasonal sales promotions may still be used in managing subscription and annuity orders, but the most important factor is establishing and maintaining a loyal customer base through ongoing relationships. Therefore, option (B) is correct.