If a firm outsources its marketing or distribution function, it may lose access to the knowledge of customer ________ that inspired its early product breakthroughs.
A) education
B) socioeconomics
C) demographics
D) preferences

Question

Quizplus · Accepted Answer

Customer preferences are the specific tastes, needs, and wants of customers that inspired a firm's early product breakthroughs. Outsourcing marketing or distribution functions may result in the loss of this knowledge and understanding of customer preferences. Choice A, education, refers to knowledge about a particular subject or skill set and is unlikely to be the focus of the firm's outsourcing decision. Choice B, socioeconomics, refers to the study of the social and economic factors that influence individuals and groups, but does not directly relate to customer preferences. Choice C, demographics, refers to statistical characteristics of a population, such as age and gender, which may inform marketing decisions, but do not encompass the full extent of customer preferences.

If a Firm Outsources Its Marketing or Distribution Function, It