In the Case of Cellular Phones, the Physical Product Is

question 49

Multiple Choice

In the case of cellular phones, the physical product is practically given away to gain the phone services contract. This could be because:

• A) the cellular phone company does not view market share as a strategic goal.
• B) the cost of production of the cellular phone is very low.
• C) the revenues from associated services exceed the revenues from the cellular phone.
• D) the margins on after-sales services for the cellular phones is low.
• E) consumers sometimes buy a variety of services that are not associated with products.

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Definitions:

Groupthink

Group pressure to conform despite individual misgivings.

Pressure

The feeling of stress or urgency caused by the demands and expectations of others or by one's own goals or responsibilities.

Conform

To align one's beliefs, attitudes, or behaviors with those of a group or societal norms, often to fit in or be accepted by others.

Group Cohesiveness

The degree to which members of a group feel connected and committed to each other, facilitating cooperation and shared goals.