Customers cannot purchase every product. How does this fact affect companies that make products?
(1 point)
Responses
They increase costs to make up for low sales.
They increase costs to make up for low sales.
They decrease quality to make up for low sales.
They decrease quality to make up for low sales.
They provide better value so that customers choose their products.
They provide better value so that customers choose their products.
They provide fewer options so that customers choose their products.
They provide fewer options so that customers choose their products.
They provide better value so that customers choose their products.
They provide fewer options so that customers choose their products.
The fact that customers cannot purchase every product can have several effects on companies that make products:
1. They increase costs to make up for low sales: If a company sees that certain products are not selling well, they may increase the prices of those products in order to compensate for the low sales and generate enough revenue.
2. They decrease quality to make up for low sales: In some cases, companies may compromise on the quality of their products if they are not selling well. By reducing the quality, they may be able to lower production costs and make products more affordable, hoping to attract more customers.
3. They provide better value so that customers choose their products: To differentiate themselves from their competitors and attract customers, companies may strive to provide better value with their products. This can include offering additional features, improved performance, or more competitive pricing.
4. They provide fewer options so that customers choose their products: Another approach companies may take is to limit the number of options available to customers. By reducing the range of products, they can focus on a smaller selection that they believe will have higher demand, making it easier for customers to make a decision.
These responses highlight some of the strategies that companies may employ to address the challenge of customers not being able to purchase every product. However, it is important to note that the specific actions taken by each company will depend on various factors, such as their industry, target market, and competitive landscape.