Welcome to Business Models Guide
Business Ethic Models Article
. For a permanent link to this article, or to bookmark it for further reading, click here.
Subscription business model
from: Deb St. George - MarketingSalesCopy.comThe subscription business model is gaining increased currency in current business environment and has been successfully used in concerns like book club, mobile phone companies, magazines, cable TV companies and internet providers.
In this model a customer is required to pay well in advance subscription money to use the service or the product that the company provides. For example rather than selling a product individually, week by week or monthly ,the company subscribes a customer for a given period which could range from a few months to a couple of years. Some subscriptions can last for life time also.
Initially this business model was used by newspapers and magazine companies only.
The purpose of this process is to build brand loyalty and to ensure recurring sale.
There are three kinds of subscriptions
Unlimited Subscription: In this a customer pays one time for unlimited access to product or service for a fixed period of time.
Limited Subscription: In this form a fixed set of service or product is available to customer for a fixed period of time.
Basic Subscription: In this customer, on initial subscription is provided with some basic services with additional services delivered on pay as you use basis.
This model has both advantages and disadvantages for both the customer and the vendor.
For Vendors : The vendor gets revenue well in advance and does not need to worry weather the next edition of the product or service would be able to generate the same curiosity amongst customer as the current one or not. Through advance subscription, the vendor also succeeds in building brand loyalty amongst customer.
It in a way also increases the sales, as the customer cannot say no to any specific issue of the service.
For Customers: the customer is saved from repetitive trips to the vendor to buy the service and a consumer may find subscriptions convenient as they save time and energy.
However a customer should be careful and should subscribe only if he or she intends to use the service for a long time. The reason for this is that once subscribed for a service, he is bound by the agreement to continue with it for a specified period of time. Also the onetime cost of subscription can be quite high if a customer who plans to use the service frequently, but later does not.
Also it is felt that “one-time-purchase" model does not give vendors incentive to maintain relationships with their customers.
However it’s good to remember that a vendor only succeeds when the customer subscribes again, so customer and vendor should work to align their goal for mutual benefit for this business model to succeed.
Business Ethic Models News
Brand owners constructing new models - Warc
Brand owners constructing new models Warc IBM, the business services firm, polled 1709 chief executives from 18 industries, and found 65% wanted to shape their organisation so it reflected laudable "ethics and values". A further 63% emphasised fostering a collaborative environment and thus ... |
Ann Arbor CEO and Author Earns Honorary Doctorate From Cleary University - MarketWatch (press release)
Ann Arbor CEO and Author Earns Honorary Doctorate From Cleary University MarketWatch (press release) Dan is a role model for the ethical treatment of customers in an industry where many are tempted to take shortcuts," said Cleary University President Tom Sullivan. "Dan is very high energy; my role model for multi-tasking; a highly effective manager, ... |
The Facebook IPO: What Went Wrong? - Knowledge@Wharton
 Knowledge@Wharton | The Facebook IPO: What Went Wrong? Knowledge@Wharton "Facebook certainly has a tremendous user base, [which] is more locked in than any social network before," says Andrea Matwyshyn, a legal studies and business ethics professor at Wharton. Customers stay because the stories of their lives -- photos, ... |
Can We Use Corporate Social Responsibility to Evaluate Companies? - Forbes
 Co.Exist | Can We Use Corporate Social Responsibility to Evaluate Companies? Forbes I am at Bentley University, in Massachussets, attending the Bentley Global Business Ethics Symposium, sponsored by State Street Foundation.The tittle of the symposium is “the Future of Capitalism: Ethics, Sustainable Practice & the Global Economy. From Fringe to Mainstream: Companies Integrate CSR Initiatives into Everyday ... 10 Ways To Make The Business Case For Sustainability In The Arab World |
Nestlé + Greenpeace: A Model for Sustainable Sourcing of Palm Oil? - Triple Pundit
 Triple Pundit | Nestlé + Greenpeace: A Model for Sustainable Sourcing of Palm Oil? Triple Pundit By 3p Guest Author | May 19th, 2012 0 Comments The following post is in partnership with Ethical Corporation in support of the upcoming Responsible Business Summit in New York. For an in depth look at the summit covering supply chain management and ... |
2012 Minnesota Business Ethics Award Honors Three Companies - MarketWatch (press release)
2012 Minnesota Business Ethics Award Honors Three Companies MarketWatch (press release) MINNEAPOLIS, May 16, 2012 (BUSINESS WIRE) -- Minnesota business and professional leaders gathered Wednesday, May 16, to honor three companies with the 2012 Minnesota Business Ethics Award (MBEA). The MBEA recognizes Minnesota businesses that exemplify ... |
Ethics education gets spotlight at Duquesne University - Pittsburgh Post Gazette
Ethics education gets spotlight at Duquesne University Pittsburgh Post Gazette Geoff Archer, an American professor at Royal Roads University in Canada, recently asked his undergraduate business students to watch the 1987 film "Wall Street." Then he asked them about business ethics. "More than half of the class said, ... |