When a firm produces only a single product or service and attempts to sell it to two or more market segments, it avoids __________, which often results in extremely high research, engineering, and manufacturing expenses.
A)the extra cost of developing and producing additional versions of the product
B)creating a customer service gap
C)indirect distribution and logistics problems
D)restructuring the firm's strategic planning
E)amortization costs of product enhancements

Question

Quizplus · Accepted Answer

By producing only a single product or service and trying to sell it to multiple market segments, the firm avoids the additional costs associated with developing and producing multiple versions of the same product. This leads to lower research, engineering, and manufacturing expenses.

When a Firm Produces Only a Single Product or Service