Consumers fix the price on their own, which a business may accept or decline. This comes under the ______ model.
- (a)B2B
- (b)B2C
- (c)C2B
- (d)C2C
Correct — C, C2B (Consumer-to-Business). In the C2B model, an individual consumer initiates the transaction by setting their own price or offering a product/service, and a business decides whether to accept or decline it — the classic real-world example is a 'Name Your Own Price' travel-booking model, where a traveller names a price and the airline/hotel can accept or reject it.
- (a)B2B — Business-to-Business — a transaction between two businesses (e.g., a manufacturer supplying a wholesaler); the price is not set unilaterally by an individual consumer.
- (b)B2C — Business-to-Consumer — the business sets the price and sells directly to consumers; this is the reverse of a consumer setting the price.
- (d)C2C — Consumer-to-Consumer — individuals transact directly with each other (e.g., a peer-to-peer resale marketplace); no business is involved in accepting or declining the price.
E-commerce transactions are classified by who initiates the deal and who the counterparty is: B2B (business to business), B2C (business to consumer), C2B (consumer to business) and C2C (consumer to consumer). C2B specifically flips the usual pricing power — the individual consumer proposes a price or service, and the business chooses whether to accept it.
The trap is confusing C2B with C2C: both start with 'consumer', but in C2B the counterparty is a business deciding whether to accept the consumer's offer, whereas in C2C the counterparty is another individual with no business decision involved.
- C2B: consumer sets/proposes the price or offering; a business accepts or declines it
- B2C: business sets the price and sells to consumers (most retail e-commerce)
- B2B: transactions strictly between businesses
- C2C: individuals transact directly with other individuals (no business as counterparty)
C2B is the only model where an individual consumer proposes the price and a business is the one deciding whether to accept it.
- Confusing C2B (business decides whether to accept the consumer's price) with C2C (no business involved at all)
- Assuming any consumer-initiated transaction is automatically C2C
MPPSC typically gives a short scenario ('who sets the price / who initiates') and asks which of the four e-commerce models it fits — identify both parties and who has the pricing power.
No directly related past PYQ was found.
- practice — not a real PYQ
A traveller names their own price for a hotel room, which the hotel may accept or reject. This is an example of which e-commerce model?
- (a)B2B
- (b)B2C
- (c)C2B
- (d)C2C
Answer(c) C2B — the consumer proposes the price to a business.
- practice — not a real PYQ
An individual sells their used furniture directly to another individual through an online classifieds site. This is an example of which e-commerce model?
- (a)C2B
- (b)C2C
- (c)B2C
- (d)B2B
Answer(b) C2C — a direct individual-to-individual transaction.