A Strategy for Managing a Product's Life Cycle That Attempts

question 185

Multiple Choice

A strategy for managing a product's life cycle that attempts to increase a product's use among existing customers, create new use situations, or find new customers is referred to as

• A)market modification.
• B)product modification.
• C)product repositioning.
• D)customer orientation.
• E)diversification.

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Definitions:

Maintenance Agreement

A contract between a vendor and a customer stipulating regular maintenance services and support over a specified period.

Implicit Lease Rate

An inferred interest rate in a lease agreement, calculated from the lease payments, the fair value of the leased asset, and the residual value.

Present Value Interest Factors

A factor used to calculate the present value of a future amount when the interest rate and period are known.

Guaranteed Residual Value

Guaranteed Residual Value is an assurance that the value of an asset at the end of its lease term will be at least a specified amount.