Question

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?

Answer 1

Answer: Freemium

Explanation: Freemium incorporates both free and premium services into one strategic pricing technique.

Using Freemium strategy involves providing a service originally or initially for free, wherebtvconsyners are not charged or billed for using the service. However, embedded within the free platform are premium features ( features charged at a fee) which provides an extension or additional functionality to the free services. Usually, the free services provided for users are to allow them get a bit or feel of the company's offering and entice them into subscribing to the most useful and core services made available on the premium platform.

Aguilar could introduce a Freemium app which only send notification to free users when it's time to water their plant. While the Freemium platform offers an automated watering system. Free users may be enticed after having a feel of the ease and comfort the premium feature could offer.

Answer 2

Answer: D. Freemium

Step-by-step explanation:

Freemium is a combination of the words "free" and "Premium". Coined in 2006 by Jarid Lukin, it has been practiced since the 1980s and refers to a type of business model that involves offering customers both free and extra cost services.

Here the company provides basic services for a customer to try but at the same time then offers more advanced services that compliment the free service for a cost or premium.

This is the strategy that most free digital applications use and Aguilar can do the same with it's Automated Watering System.