The Concept of a Value Chain Is Not Significant to Organizations

question 58

True/False

The concept of a value chain is not significant to organizations unless they manufacture products.

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Definitions:

Skimming

A pricing strategy where a company sets a high price for a product and sells to the segment that is willing to pay a premium.

Pricing Strategy

The approach businesses use to determine the best price for their products or services in order to maximize profits and market share.

High Price

A situation where goods or services are offered at a cost that is significantly above the average or expected price range.

Premium

A premium refers to the additional amount above the normal cost or nominal value of a product, service, or insurance coverage, often indicating a higher quality or level of service.