IPA IP 2023 Question 21
A question IPA Japan published in 令和5年度 ITパスポート試験 公開問題 問21, translated into English. ITPEC is based on the same exams.
Which of the following is an appropriate example of freemium?
Explanation
A business card service whose basic functions are free and whose extra functions are paid — freemium combines “free” and “premium”: the many use the basic version free, and the few who want more pay.
In a freemium model the free tier attracts a large user base at almost no cost per user, and revenue comes from the small share of users who upgrade to paid functions. The business card service fits exactly: registering and managing one's own cards is free, while sharing customer information within the company and searching for people are paid add-ons.
Answer (c)
Why not others:
- •(a) — a flat-rate pass is bought before any drink is served: an all-you-can-use subscription, with no free tier
- •(b) — software that is free to download and use but may not be modified is freeware; nothing is sold on top of it
- •(d) — the reader pays nothing because advertisers pay: an advertising-funded model, not a free basic version with a paid premium one
Key rule: Freemium means the same product in two tiers, the basic one free and the advanced one paid by the users who want it; free because a third party pays is advertising, not freemium.
Business Strategy Management · AI-written, may contain errors
This question comes from the past questions IPA Japan publishes, translated into English by ITPEC Practice. ITPEC Practice is an independent study tool and is not affiliated with IPA or ITPEC. See the original paper (PDF) or Report an issue.