Which statement concerning absolute and relative product failures is NOT correct?
A) All absolute product failures are relative product failures.
B) A firm can consider a new product to be a relative product failure if it takes sales away from other products.
C) If a product makes a very small profit (that is less than planned), the product is a relative product failure but not an absolute product failure.
D) A product failure can be both a relative and an absolute product failure.

Question

Quizplus · Accepted Answer

Absolute product failures are those that do not meet the basic criteria of success, such as failing to cover production costs, whereas relative product failures may still be profitable but not meet expectations or objectives. Not all absolute product failures are considered relative product failures, as the definitions and implications of each can differ.

Which Statement Concerning Absolute and Relative Product Failures Is NOT