Scenario: Audio Component Outsourcing

question 43

Multiple Choice

Scenario: Audio Component Outsourcing
Echo Corporation manufactures high-quality audio components, such as speakers, amplifiers, and receivers, for home entertainment systems. Echo has been losing market share in recent years due to the competitive pricing of other audio component manufacturers that engage in outsourcing. Echo managers are attempting to convince Nathan Douglas, the firm's founder and CEO, that outsourcing would enable the firm to be more competitive without sacrificing quality.
-Which of the following is most likely a potential benefit for Echo if it outsources some of its manufacturing activities?

• A) heightened communications awareness
• B) increased activity in e-commerce sales
• C) strong intellectual property protection
• D) eliminating the exposure of assets to political risk

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Definitions:

Customer Benefit Approach

An approach whereby the salesperson asks questions that imply that the product will benefit the prospect.

Critical Needs

Essential requirements or factors that must be addressed or fulfilled to ensure the success or survival of a project, initiative, or business operation.

Probes

Questions or statements designed to gather more information, clarify understanding, or uncover needs and preferences during a conversation or sales process.

Two-Way Communication

A form of communication where information flows back and forth between two parties, allowing for feedback and interaction.