Which Statement Is Most Likely True About Shifting from a Product-Based

question 45

Multiple Choice

Which statement is most likely true about shifting from a product-based to a service-based business?

• A) Adding services tends to decrease overall sales because a firm needs to increase its promotional spending.
• B) Services require less integration and communication between supplier and customer, which increases profitability.
• C) Services tend to cause an erratic flow of revenue because they are less resistant to economic cycles than products.
• D) Services are typically onetime purchases, unlike products, which are purchased often.
• E) Services increase the level of differentiation with competitive offerings.