If the Adoption of a New Product Will Reduce the Sales

question 110

Multiple Choice

If the adoption of a new product will reduce the sales of an existing product, then the:

• A)New product should not be undertaken
• B)Old product should be abandoned
• C)Incremental benefits of the new product may be overestimated
• D)Incremental benefits of the new product may be underestimated

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Definitions:

Convenient Location

Refers to a geographical location that offers ease of access, making it favorable for businesses or residences.

Product Differentiation

A marketing strategy that businesses use to distinguish their products from those of competitors, highlighting differences in quality, features, or design.

Profit-Maximizing

The process or strategy of adjusting inputs and outputs to achieve the highest possible profit.

Loss-Minimizing

A strategy employed by firms to reduce the extent of their losses to the lowest possible level under adverse circumstances.