Why Do Most Personal Computer Manufacturers Purchase Components from Outside

question 4

Multiple Choice

Why do most personal computer manufacturers purchase components from outside suppliers?

• A) protection of intellectual property rights
• B) fast rate of technological change
• C) close oversight of quality ratios
• D) fluctuation in currency rates

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Definitions:

Recognizable Goods

Products that are easily identified by consumers due to their distinct characteristics, branding, or reputation in the marketplace.

Cannibalization

A situation where a company's new product eats into the sales of one of its existing products.

Brand Equity

The value derived from consumer perception of a brand name as opposed to generic or store-branded products.

Product Extension

A marketing strategy in which an existing product is introduced to a new market or modified for a new segment, expanding its reach or functionality.