Define the term freeconomics. Briefly explain the different approaches of freeconomics

What will be an ideal response?

Freeconomics is the leveraging of digital technologies to provide free goods and services to customers as a business strategy for gaining a competitive advantage.
Typically, firms can implement the following approaches for applying freeconomics to various industries:
1. Advertising - In this approach, services are provided free of charge to the customers and the firm is paid by a third party.
2. Freemium - In this approach, the firm provides free basic services to the customers but charges them a premium for special services.
3. Cross subsidies - In this approach, the firm reduces the sale price of one item in order to sell something else of value.
4. Zero marginal cost - In this approach, products are distributed to customers without an appreciable cost to anyone.
5. Labor exchange - In this approach, the firm provides services to the customers. The act of using the services creates value for the company.
6. Gift economy - In this approach, the firm creates an environment that allows people to participate and collaborate to create something of value for everyone.