Traditionally, customers have had three specific worries about product service. What are they?
What will be an ideal response?
Manufacturers of equipment–small appliances, office machines, tractors, mainframes, airplanes–all must provide product-support services. The three specific worries about product services that customers face are:
1. They worry about reliability and failure frequency. For example, a farmer may tolerate a combine that will break down once a year, but not two or three times a year.
2. They worry about downtime. The longer the downtime, the higher the cost. The customer counts on the seller's service dependability which refers to the seller's ability to fix the machine quickly or at least provide a loaner.
3. They worry about out-of-pocket costs, which refers to the amount they have to spend on regular maintenance and repair costs.
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A hybrid alternative that is rapidly gaining popularity which trades on an exchange but where prices are kept close to the value of the underlying portfolio through arbitrage activities by a few institutional investors is called
A) exchange-traded fund. B) open-end fund. C) closed-end fund. D) country fund.
How has the global economy changed the competitive environment?
A) Suppliers are not required to reach a wide range of customers. B) Customers now have less access to information about substitutes. C) It has intensified rivalry by increasing product and vendor choices. D) It has made it easier for new market entrants in all fields to penetrate the market.