The Difference Between Absolute and Relative Product Failure Is

question 50

Multiple Choice

The difference between absolute and relative product failure is

• A)absolute product failure can be fixed by repositioning or improving the product,whereas relative product failure is permanent.
• B)relative product failure loses money on its investment,whereas absolute product failure returns a small profit.
• C)relative product failure is the result of poor timing,whereas absolute product failure is the result of the lack of the ability to provide benefits that satisfy customers' desires.
• D)absolute product failure is caused by design problems,whereas relative product failure is caused by poor promotion or distribution.
• E)absolute product failure results in a loss on the investment and is deleted from the product mix,whereas relative product failure results in a small profit,and improvements or repositioning can create success later.

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Definitions:

Zero-Sum Game

A situation in game theory where the gain of one participant is exactly balanced by the loss of another participant.

Credible Threat

A promise of negative consequences that is believable and likely to influence behavior in strategic situations.

Collusive Agreements

Refers to arrangements between firms to limit competition, fix prices, or divide markets among themselves, often leading to higher prices for consumers.

Dominant Firm

A company with a major share of market sales, which has the power to influence market conditions and pricing.