Zephyr Professional Practice Test

What defines market-based pricing in cloud services?

1. Fixed prices for all services

2. Prices that vary based on supply and demand

3. A standard price for all consumers

4. An average price determined quarterly

The correct answer is: Prices that vary based on supply and demand

Market-based pricing in cloud services is characterized by prices that fluctuate based on the principles of supply and demand. This approach allows service providers to adjust their pricing dynamically according to the current market conditions, customer demand, and resource availability. For example, if there is a surge in demand for a particular cloud service or resource, the prices may rise to reflect that increased demand. Conversely, if there is an oversupply of resources, prices may drop to attract more customers. This pricing strategy ensures that prices are competitive and aligned with market forces, making it more responsive and relevant to customer needs and the overall market landscape. Other options, such as fixed prices or standard prices for all consumers, do not capture the essence of market-based pricing as they suggest a lack of flexibility and responsiveness to market dynamics. Additionally, using an average price determined on a periodic basis does not account for real-time changes and variations that occur in the cloud services market. The emphasis in market-based pricing is on adaptability and the ability to reflect the current economic conditions influencing both supply and demand.