Anne and Joseph Lead the Product Development Team for a National

question 28

Multiple Choice

Anne and Joseph lead the product development team for a national GPS system manufacturer.In reviewing customer satisfaction survey results, they find that product reliability is one of their customers' biggest complaints.From a marketing perspective, reliability in a product means

• A) it is expensive to own one.
• B) the product will perform to quality standards.
• C) the prestige of the product bolsters the consumer's self-image.
• D) maintenance and repair costs are high.

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Definitions:

Long Run

The long run is a period in economics wherein all inputs can be adjusted, and there are no fixed costs, allowing full operational flexibility.

Price Discrimination

A pricing strategy where identical or substantially similar goods or services are sold at different prices by the same provider.

Good Or Service

Any tangible product (good) or intangible offering (service) that can be sold or provided in a market to satisfy the demand of a customer.

Marginal Revenue

The additional income received from selling one more unit of a product or service.