Improving customer service, investing in production R&D, and striving for input quality are drivers that
a. lower costs.
b. blur product recognition.
c. enhance differentiation.
d. lead to commodity-like products.
Answer: c. enhance differentiation.
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For each of the following activities, indicate an appropriate allocation base
Activity Allocation Base Warranty Services-Providing service for defective products Setup-Setting up machines for production Shipping-Shipping finished products to customers Machining-Machine usage Purchasing-Purchasing raw materials What will be an ideal response
A manufacturer of a product in the decline stage of its product life cycle would be LEAST likely to do which of the following?
A) continue producing the product for loyal users B) reduce the advertising budget for the product C) phase out production of the product D) advertise heavily without changing the product or its target market E) withdraw most marketing support for the product and rely on e-commerce