Microsoft Introduced Its Zune Player a Few Years After Apple

question 28

Multiple Choice

Microsoft introduced its Zune player a few years after Apple launched its iPod and other competitors had offered their new MP3 players. Zune sales were very disappointing and Microsoft eventually killed the product. According to the textbook, the primary reason for the Zune's failure was due in large part to

• A)bad timing.
• B)not satisfying customer needs on critical factors.
• C)poor product quality.
• D)an insignificant point of difference.
• E)incomplete market and product protocol.

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Definitions:

Private Market

A sector of the economy where transactions are made between private individuals or corporations without significant government intervention.

Common Resources

Refers to goods that are non-excludable and rival in consumption, such as fish stocks in the ocean or public parks, where usage by one person reduces availability for others.

Marginal Social Cost

The cost to society of producing one additional unit of a good or service.

Private Supply

The provision of goods or services by businesses or individuals rather than by the government.