Consumers fix the price on their own, which a business may accept or decline. This comes under the ______ model.

Question

UnlockIAS · Accepted Answer

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.

Why the other options are wrong — (a) 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) Business-to-Consumer — the business sets the price and sells directly to consumers; this is the reverse of a consumer setting the price.  (d) 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.

Concept: 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.

State PCS 2021 Q30 — Science & Technology PYQ with Answer

State PCS 2021 Q30 — Science & Technology PYQ with Answer