External Failure Costs Are Incurred When Poor-Quality Goods or Services

question 7

True/False

External failure costs are incurred when poor-quality goods or services are passed on to the customer and include costs of returns, warranty costs, and management time handling customer complaints.

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Definitions:

Niche Markets

Niche markets are specific, targeted segments of the broader market, characterized by a unique demand and specific customer needs that are not fully addressed by mainstream providers.

Product Differentiation

The strategy of distinguishing a product from competitors' products by emphasizing its unique features, quality, or design.

Motion Sensors

Devices that detect physical movements in a given area and convert them into signals, often used in security systems and energy efficiency applications.

Product Differentiation

The strategy of distinguishing a product or service from others in the market to make it more attractive to a particular target market.