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810-440 · Question #236

Which building block of business model canvas addresses the customer's willingness to pay?

The correct answer is A. revenue streams. The Revenue Streams building block of the Business Model Canvas specifically addresses how a company generates income from its customer segments and reflects the customer's willingness to pay. It defines the cash a company generates from each customer segment for the value provid

Introduction to Business Architecture

Question

Which building block of business model canvas addresses the customer's willingness to pay?

Options

  • Arevenue streams
  • Bcost structure
  • Ccustomer segments
  • Dcustomer channels

How the community answered

(30 responses)
  • A
    90% (27)
  • C
    7% (2)
  • D
    3% (1)

Why each option

The Revenue Streams building block of the Business Model Canvas specifically addresses how a company generates income from its customer segments and reflects the customer's willingness to pay. It defines the cash a company generates from each customer segment for the value provided.

Arevenue streamsCorrect

Revenue Streams define how a company makes money from each customer segment, detailing the pricing mechanisms and methods through which customers are willing to pay for the value proposition. This directly addresses the customer's willingness to pay for products or services.

Bcost structure

Cost Structure identifies all the costs incurred to operate a business model, focusing on expenses, not customer willingness to pay.

Ccustomer segments

Customer Segments defines the different groups of people or organizations an enterprise aims to reach and serve, focusing on who the customers are, not how they pay.

Dcustomer channels

Customer Channels describe how a company communicates with and reaches its customer segments to deliver a value proposition, focusing on delivery mechanisms, not payment willingness.

Concept tested: Business Model Canvas - Revenue Streams

Source: https://strategyzer.com/canvas/business-model-canvas

Topics

#Business Model Canvas#Revenue streams#Willingness to pay

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