To Implement the Strategy Create Demand by Solving Problems, a Company

question 7

Multiple Choice

To implement the strategy create demand by solving problems, a company

• A)creates problems for customers, then solves them.
• B)first identifies the problems in a particular field.
• C)develops a reputation for technological excellence.
• D)offers solutions to problems customers did not know they had.

---

Definitions:

Economic Value

The measure of the benefit provided by a good or service to an economic agent, often represented in terms of willingness to pay for it.

Service Hours

A measure of the amount of time spent providing services to customers, often used to allocate service department costs to producing departments.

Net Operating Income

An evaluation of a business's core operating income, omitting the effects of interest and tax expenses.

Price Reduction

A decrease in the selling price of a product or service, often to stimulate demand or respond to competition.