While the Industry for E-Book Readers Is in Its Growth

question 8

Multiple Choice

While the industry for e-book readers is in its growth stage,the industry for landline telephones is in the decline stage of the industry life cycle.Which of the following can be inferred from this?

• A) While firms in the e-book reader industry will focus on pursuing a harvest strategy, firms in the landline telephone industry will focus on product innovations.
• B) The e-book reader industry is at a more advanced stage than the landline industry of the industry life cycle.
• C) While firms in the e-book reader industry will attract customers categorized under late majority, firms in the landline telephone industry will attract the early majority customers.
• D) The number of competitors in the e-book reader industry will be larger when compared to the landline telephone industry.

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Definitions:

Lifetime Value Perspective

An approach in marketing that focuses on the total revenue or profit a business can expect from a customer over the duration of their relationship.

Customer Retention

The activities and actions companies take to reduce the number of customer defections and to encourage customers to continue using their services or products.

Profitable Marketing Strategy

A plan for marketing products or services that focuses on generating significant profit margins and return on investment.

Cash Cow

A product, service, or business unit that generates significantly more money than it costs to maintain, often providing the funding necessary to support other business activities.