1Which element of the 7 P's refers to the goods or services offered to customers?
7 P's and 7 C's of marketing
Easy
A.Promotion
B.Place
C.Price
D.Product
Correct Answer: Product
Explanation:
Product refers to the goods or services a business offers to satisfy customer needs.
Incorrect! Try again.
2Which marketing-mix element determines what a customer pays for a product?
7 P's and 7 C's of marketing
Easy
A.Process
B.People
C.Place
D.Price
Correct Answer: Price
Explanation:
Price is the amount customers pay to obtain a product or service.
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3In the 7 P's, which element concerns distribution and product availability?
7 P's and 7 C's of marketing
Easy
A.Process
B.People
C.Promotion
D.Place
Correct Answer: Place
Explanation:
Place covers the channels and locations through which customers obtain the product.
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4Advertising, public relations, and sales promotion are mainly part of which P?
7 P's and 7 C's of marketing
Easy
A.Promotion
B.Physical evidence
C.Product
D.Process
Correct Answer: Promotion
Explanation:
Promotion includes activities used to communicate an offering and persuade customers.
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5Which of the 7 P's focuses on employees and others involved in delivering a service?
7 P's and 7 C's of marketing
Easy
A.Place
B.People
C.Price
D.Product
Correct Answer: People
Explanation:
People includes employees and other individuals who influence service delivery and customer experience.
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6Which P describes the procedures and steps used to deliver a service?
7 P's and 7 C's of marketing
Easy
A.People
B.Process
C.Promotion
D.Place
Correct Answer: Process
Explanation:
Process refers to the procedures and activities through which a service is delivered.
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7A restaurant's cleanliness and interior design are examples of which P?
7 P's and 7 C's of marketing
Easy
A.Price setting
B.Product planning
C.Personal selling
D.Physical evidence
Correct Answer: Physical evidence
Explanation:
Physical evidence includes tangible features that help customers evaluate a service.
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8In a customer-oriented marketing approach, which C corresponds most closely to Product?
7 P's and 7 C's of marketing
Easy
A.Customer cost
B.Convenience
C.Customer solution
D.Communication
Correct Answer: Customer solution
Explanation:
Customer solution shifts attention from the product itself to the need or problem it solves.
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9Which C emphasizes making an offering easy for customers to find and purchase?
7 P's and 7 C's of marketing
Easy
A.Customer care
B.Communication
C.Convenience
D.Customer cost
Correct Answer: Convenience
Explanation:
Convenience focuses on making the purchase and access process easy for customers.
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10Which C emphasizes two-way interaction between a business and its customers?
7 P's and 7 C's of marketing
Easy
A.Communication
B.Coordination
C.Confirmation
D.Convenience
Correct Answer: Communication
Explanation:
Communication involves sharing information and listening to customer feedback.
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11Which of the 4 A's asks whether a product meets customer expectations?
4 A's of marketing
Easy
A.Awareness
B.Accessibility
C.Acceptability
D.Affordability
Correct Answer: Acceptability
Explanation:
Acceptability concerns how well an offering meets the needs and expectations of customers.
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12Which of the 4 A's focuses on whether customers can pay for an offering?
4 A's of marketing
Easy
A.Acceptability
B.Affordability
C.Awareness
D.Accessibility
Correct Answer: Affordability
Explanation:
Affordability considers whether customers have the financial ability to purchase the offering.
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13Which of the 4 A's refers to how easily customers can obtain a product?
4 A's of marketing
Easy
A.Affordability
B.Accessibility
C.Acceptability
D.Awareness
Correct Answer: Accessibility
Explanation:
Accessibility concerns how easily and conveniently customers can obtain the offering.
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14Which of the 4 A's measures whether customers know about a product?
4 A's of marketing
Easy
A.Accessibility
B.Awareness
C.Affordability
D.Acceptability
Correct Answer: Awareness
Explanation:
Awareness refers to customers' knowledge of an offering and its benefits.
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15What is customer-perceived value?
Customer quality, value and satisfaction
Easy
A.Price compared with profit
B.Sales compared with inventory
C.Benefits compared with costs
D.Advertising compared with demand
Correct Answer: Benefits compared with costs
Explanation:
Customer-perceived value is the customer's assessment of received benefits relative to incurred costs.
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16Customer satisfaction mainly depends on how product performance compares with what?
Customer quality, value and satisfaction
Easy
A.Customer expectations
B.Competitor salaries
C.Factory capacity
D.Retailer inventory
Correct Answer: Customer expectations
Explanation:
Satisfaction results from comparing perceived product performance with prior expectations.
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17When perceived performance exceeds expectations, a customer is most likely to be what?
Customer quality, value and satisfaction
Easy
A.Unaware
B.Delighted
C.Dissatisfied
D.Indifferent
Correct Answer: Delighted
Explanation:
Customers are generally delighted when performance is better than they expected.
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18What is the main purpose of Porter's value chain analysis?
Michael E. Porter's chain analysis model
Easy
A.To predict currency movements
B.To examine value-creating activities
C.To select accounting standards
D.To calculate national income
Correct Answer: To examine value-creating activities
Explanation:
Value chain analysis examines activities that create customer value and competitive advantage.
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19Which of the following is a primary activity in Porter's value chain?
Michael E. Porter's chain analysis model
Easy
A.Inbound logistics
B.Human resource management
C.Technology development
D.Firm infrastructure
Correct Answer: Inbound logistics
Explanation:
Inbound logistics is a primary activity involving the receipt, storage, and handling of inputs.
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20Which of the following is a support activity in Porter's value chain?
Michael E. Porter's chain analysis model
Easy
A.Human resource management
B.Operations
C.Marketing and sales
D.Outbound logistics
Correct Answer: Human resource management
Explanation:
Human resource management is a support activity that recruits, trains, and develops employees.
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21A fitness center introduces flexible membership plans, trains its staff to provide personalized guidance, and redesigns its reception area to look more professional. Which combination of the 7 P's is most directly represented?
7 P's and 7 C's of marketing
Medium
A.Price, people, and physical evidence
B.Product, promotion, and process
C.Place, price, and promotion
D.Process, product, and place
Correct Answer: Price, people, and physical evidence
Explanation:
Flexible membership plans represent price, trained staff represent people, and the redesigned reception area represents physical evidence.
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22A software company replaces technical product descriptions with messages explaining how its application reduces customer workload. Which 7 C's principle is being applied most clearly?
7 P's and 7 C's of marketing
Medium
A.Convenience through retail access
B.Customer value through benefits
C.Communication through frequent contact
D.Coordination through multiple channels
Correct Answer: Customer value through benefits
Explanation:
The company focuses on the benefit received by customers rather than simply listing product features, emphasizing customer value.
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23A restaurant receives repeated complaints about slow service. Management maps each step from ordering to delivery and removes unnecessary approval steps. Which marketing-mix element is being improved?
7 P's and 7 C's of marketing
Medium
A.Process
B.Physical evidence
C.Promotion
D.Product
Correct Answer: Process
Explanation:
Process refers to the procedures and flow through which a service is delivered. Removing delays improves the service process.
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24A clothing retailer allows customers to exchange online purchases at any physical store and provides several delivery options. Which 7 C's element is most directly strengthened?
7 P's and 7 C's of marketing
Medium
A.Convenience
B.Customer solution
C.Communication
D.Customer cost
Correct Answer: Convenience
Explanation:
Multiple delivery choices and easy returns reduce the effort required to obtain and exchange the product, improving convenience.
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25A premium hotel charges more than its competitors but offers faster check-in, airport transfers, and personalized service. Which 7 C's concept best explains how it can justify the higher price?
7 P's and 7 C's of marketing
Medium
A.Customer communication replaces service quality
B.Customer value includes total perceived benefits
C.Customer cost is limited to the room rate
D.Customer convenience depends only on location
Correct Answer: Customer value includes total perceived benefits
Explanation:
Customers assess value by comparing total perceived benefits with total perceived costs, including service and convenience benefits.
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26An online education platform improves its course content, adds live tutoring, trains instructors, and displays learner success stories. Which statement best describes this marketing-mix approach?
7 P's and 7 C's of marketing
Medium
A.It combines product, people, and physical evidence
B.It treats price as the only source of differentiation
C.It relies mainly on promotion to create demand
D.It uses place to replace service improvements
Correct Answer: It combines product, people, and physical evidence
Explanation:
Course content is the product, tutors and instructors represent people, and success stories provide physical evidence of service quality.
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27A company discovers that rural customers need smaller package sizes and limited-use payment plans before launching its product. Which 4 A's activity is being emphasized?
4 A's of marketing
Medium
A.Awareness
B.Affordability
C.Accessibility
D.Acceptability
Correct Answer: Affordability
Explanation:
Smaller packages and flexible payment plans are designed to fit the customers' purchasing capacity, which addresses affordability.
Incorrect! Try again.
28A nutritious snack has strong demand in urban areas, but the company cannot sell it in smaller towns because retailers lack refrigeration. Which 4 A's issue is most evident?
4 A's of marketing
Medium
A.Affordability
B.Acceptability
C.Awareness
D.Accessibility
Correct Answer: Accessibility
Explanation:
The product is not reaching potential customers because the distribution and retail conditions are inadequate.
Incorrect! Try again.
29A company tests a new detergent with households and changes its fragrance because users dislike the original scent. Which 4 A's dimension is being improved?
4 A's of marketing
Medium
A.Accessibility
B.Affordability
C.Acceptability
D.Awareness
Correct Answer: Acceptability
Explanation:
Acceptability concerns whether the product's features, quality, and performance meet customer preferences and expectations.
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30A new mobile banking service has suitable fees and strong technical performance, but few target customers know that it exists. Which action should be prioritized?
4 A's of marketing
Medium
A.Improve accessibility by reducing app features
B.Increase affordability by adding service charges
C.Improve acceptability through redesign
D.Increase awareness through targeted communication
Correct Answer: Increase awareness through targeted communication
Explanation:
The main weakness is limited customer knowledge of the service, so communication should increase awareness.
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31A public transport app is well known and affordable, but it is difficult for elderly users to navigate. Which combination would most directly improve its market performance?
4 A's of marketing
Medium
A.More product features and fewer tutorials
B.Less distribution and more premium branding
C.Higher prices and broader advertising
D.Simpler design and assisted access points
Correct Answer: Simpler design and assisted access points
Explanation:
A simpler interface improves acceptability, while assisted access points improve accessibility for elderly users.
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32A low-cost healthcare product is widely available and heavily promoted, but customers consider its results unreliable. Which 4 A's dimension is the primary concern?
4 A's of marketing
Medium
A.Affordability
B.Accessibility
C.Awareness
D.Acceptability
Correct Answer: Acceptability
Explanation:
Customers do not accept the product's performance as satisfactory, even though they know about it and can obtain it.
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33A customer expected a laptop to last five years, but it fails after two years despite having attractive features. Which conclusion is most appropriate?
Customer quality, value and satisfaction
Medium
A.Customer value depends only on brand awareness
B.Low price eliminates the effect of product failure
C.Perceived performance is below customer expectations
D.High features automatically guarantee satisfaction
Correct Answer: Perceived performance is below customer expectations
Explanation:
Satisfaction depends on the comparison between perceived performance and expectations. A shorter lifespan creates dissatisfaction.
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34Two suppliers offer identical industrial components at the same price. Supplier A provides faster delivery and better technical support. Why might customers perceive greater value from Supplier A?
Customer quality, value and satisfaction
Medium
A.Value includes benefits beyond the physical product
B.Identical prices make perceived value identical
C.Technical support affects promotion but not value
D.Value is determined only by production cost
Correct Answer: Value includes benefits beyond the physical product
Explanation:
Customer value includes the total benefits received, such as delivery reliability and technical support, not just the component itself.
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35A company improves product reliability, but satisfaction scores remain unchanged because customers had already expected highly reliable performance. What does this result suggest?
Customer quality, value and satisfaction
Medium
A.Satisfaction depends on performance relative to expectations
B.Expectations are unrelated to satisfaction levels
C.Customers always prefer lower product quality
D.Quality improvements cannot affect customer value
Correct Answer: Satisfaction depends on performance relative to expectations
Explanation:
When improved performance only meets existing expectations, customers may not perceive an increase in satisfaction.
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36A service provider reduces waiting time but introduces complicated billing procedures. Customers report that the service is faster but less convenient overall. Which concept best explains this outcome?
Customer quality, value and satisfaction
Medium
A.Customer value reflects benefits and sacrifices together
C.Customer satisfaction is determined only by speed
D.Customer value depends on one benefit only
Correct Answer: Customer value reflects benefits and sacrifices together
Explanation:
Reduced waiting is a benefit, but complicated billing is a sacrifice. Overall value depends on the balance between both.
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37A manufacturer reduces defects by improving employee training and installing better production software. In Porter's value chain, these activities are primarily examples of which category?
Michael E. Porter's chain analysis model
Medium
A.Outbound logistics
B.Technology development
C.Inbound logistics
D.Operations
Correct Answer: Technology development
Explanation:
Production software is technology development, while employee training is a supporting activity that strengthens the value chain.
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38A retailer improves its competitive position by negotiating reliable raw-material deliveries and reducing storage delays before production begins. Which primary activity is being improved?
Michael E. Porter's chain analysis model
Medium
A.Marketing and sales
B.Inbound logistics
C.Service
D.Outbound logistics
Correct Answer: Inbound logistics
Explanation:
Inbound logistics covers receiving, storing, and managing inputs before they enter the production process.
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39A company introduces a customer helpline that solves installation problems after products have been purchased. Which primary value-chain activity does this represent?
Michael E. Porter's chain analysis model
Medium
A.Procurement
B.Operations
C.Firm infrastructure
D.Service
Correct Answer: Service
Explanation:
Service includes activities that maintain or enhance product value after purchase, such as installation assistance and customer support.
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40A business discovers that its products are manufactured efficiently, but poor delivery scheduling causes frequent stockouts at retailers. Which value-chain activity should receive immediate attention?
Michael E. Porter's chain analysis model
Medium
A.Technology development
B.Human resource management
C.Procurement
D.Outbound logistics
Correct Answer: Outbound logistics
Explanation:
Outbound logistics manages the storage and distribution of finished goods. Poor scheduling in this area can cause retailer stockouts.
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41An online bank generates strong demand, but applicants abandon account opening because identity documents must be uploaded repeatedly across several screens. Which intervention most directly aligns the Process element of the 7 P's with the Convenience element of the 7 C's?
7 P's and 7 C's of marketing
Hard
A.Train support staff to explain why repeated uploads are necessary
B.Increase advertising frequency and emphasize rapid account approval
C.Redesign verification so documents are captured once and reused
D.Reduce account fees for applicants completing every verification screen
Correct Answer: Redesign verification so documents are captured once and reused
Explanation:
The failure arises from process friction. Capturing documents once simplifies delivery and improves customer convenience without merely promoting or explaining the existing process.
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42A retailer cuts its product price by 10%, but closes neighborhood outlets, forcing customers to travel farther and wait longer. From a combined 7 P–7 C perspective, which conclusion is most accurate?
7 P's and 7 C's of marketing
Hard
A.Physical evidence improved, but customer credibility may have fallen
B.Promotion improved, but customer communication may have weakened
C.Price improved, but total customer cost may have increased
D.Product improved, but customer acceptability may have declined
Correct Answer: Price improved, but total customer cost may have increased
Explanation:
Customer cost includes money, time, effort, and inconvenience. A lower posted price can therefore coexist with a higher total cost of obtaining the offering.
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43A telemedicine provider cannot let patients physically inspect its service before purchase. It introduces physician credentials, security certifications, consultation previews, and documented response standards. Which 7 P–7 C pairing is primarily strengthened?
7 P's and 7 C's of marketing
Hard
A.Price and customer cost
B.Place and customer connection
C.Physical evidence and credibility
D.Promotion and customer convenience
Correct Answer: Physical evidence and credibility
Explanation:
Credentials, certifications, previews, and documented standards make an intangible service more tangible. They function as physical evidence and reduce perceived risk by strengthening credibility.
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44A manufacturer has products in 95% of targeted stores, yet customers report difficulty locating stock, comparing variants, and arranging delivery. Which interpretation best distinguishes Place from Convenience?
7 P's and 7 C's of marketing
Hard
A.Process is weak, but physical evidence remains strong
B.Place is weak, but communication remains strong
C.Place is strong, but convenience remains weak
D.Promotion is strong, but customer cost remains weak
Correct Answer: Place is strong, but convenience remains weak
Explanation:
High outlet coverage indicates effective distribution or Place. Convenience is still weak because customers face effort in finding, evaluating, and receiving the product.
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45A hotel promises personalized service, but employee incentives reward rapid standardized interactions and the booking system suppresses guest preferences. Which redesign best integrates People, Process, and a customer-centered 7 C perspective?
7 P's and 7 C's of marketing
Hard
A.Link staff rewards and workflows to recorded guest preferences
B.Increase promotional claims about individualized guest attention
C.Lower room prices while retaining standardized employee incentives
D.Renovate reception areas without changing service delivery rules
Correct Answer: Link staff rewards and workflows to recorded guest preferences
Explanation:
The promise requires coordinated employee behavior and supporting processes. Aligning incentives and workflows with customer preferences closes the gap between the designed experience and actual delivery.
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46A nutritionally effective food is affordable, widely distributed, and well known, but target consumers reject it because its flavor and packaging conflict with local norms. Which of the 4 A's is the binding constraint?
4 A's of marketing
Hard
A.Economic affordability
B.Physical accessibility
C.Psychological acceptability
D.Product awareness
Correct Answer: Psychological acceptability
Explanation:
The product performs its functional task, but cultural and sensory rejection undermines psychological acceptability. The other three A's are already satisfied.
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47A detergent company introduces small sachets. The price per gram rises, but the cash required for one purchase falls substantially; distribution coverage does not change. Which effect is most defensible?
4 A's of marketing
Hard
A.Purchase affordability improves while accessibility is unchanged
B.Economic affordability declines while awareness is unchanged
C.Product awareness improves while affordability is unchanged
D.Functional acceptability improves while accessibility declines
Correct Answer: Purchase affordability improves while accessibility is unchanged
Explanation:
Sachets reduce the immediate cash outlay and can improve purchase affordability despite a higher unit price. Since distribution is unchanged, accessibility does not directly improve.
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48A medicine is clinically acceptable, covered by insurance, and stocked in nearly every pharmacy. However, most eligible patients do not recognize the brand or understand the condition it treats. Which action addresses the principal 4 A gap?
4 A's of marketing
Hard
A.Reformulate the medicine to improve efficacy
B.Expand pharmacy coverage into additional districts
C.Reduce the medicine's insured copayment
D.Increase disease education and brand recognition
Correct Answer: Increase disease education and brand recognition
Explanation:
The evidence indicates an awareness deficiency rather than an acceptability, affordability, or accessibility problem. Education builds product knowledge, while recognition efforts build brand awareness.
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49A mobile banking application is nominally available nationwide, but it requires expensive smartphones, large data downloads, and continuous high-speed connectivity. Which intervention most directly improves Accessibility without changing the service price?
4 A's of marketing
Hard
A.Offer USSD access and low-bandwidth agent-assisted transactions
B.Add premium features for customers using newer smartphones
C.Advertise the application's encryption and fraud protection
D.Provide interest rebates to customers maintaining large balances
Correct Answer: Offer USSD access and low-bandwidth agent-assisted transactions
Explanation:
USSD and agent-assisted channels reduce technological and geographic barriers to obtaining the service. This improves practical accessibility without requiring a price reduction.
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50A firm requires minimum scores of 70 for each of the 4 A's. Four launch plans have scores in the order Acceptability, Affordability, Accessibility, Awareness, followed by expected contribution. Which plan should be selected if feasibility is assessed before contribution?
4 A's of marketing
Hard
A.Plan W: ; contribution
B.Plan Y: ; contribution
C.Plan X: ; contribution
D.Plan Z: ; contribution
Correct Answer: Plan X: ; contribution
Explanation:
Only Plan X reaches the minimum score of 70 on all four dimensions. Higher contribution cannot compensate for failure on a binding feasibility threshold.
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51Using the net-value model , where is perceived benefit and , , and are monetary, time, and psychological costs, which offer provides the greater customer value? Offer A has ; Offer B has .
Customer quality, value and satisfaction
Hard
A.Offer B, because its net value equals
B.Offer B, because its total cost equals
C.Offer A, because its perceived benefit is higher
D.Offer A, because its net value equals
Correct Answer: Offer B, because its net value equals
Explanation:
Offer A provides of net value. Offer B provides , so Offer B creates greater customer value.
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52Service A delivers performance of 8 on a ten-point scale against an expectation of 6. Service B delivers performance of 9 against an expectation of 9.5. Under a simple expectation-disconfirmation model, which conclusion follows?
Customer quality, value and satisfaction
Hard
A.Neither service can create satisfaction above neutral
B.Service A is likely to create greater satisfaction
C.Service B is likely to create greater satisfaction
Correct Answer: Service A is likely to create greater satisfaction
Explanation:
Service A produces positive disconfirmation of , whereas Service B produces negative disconfirmation of . Higher objective performance does not guarantee higher satisfaction.
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53An appliance redesign reduces manufacturing defects from 2% to 0.5%, but makes controls harder to understand and increases average task-completion time. Which claim about customer-perceived quality is strongest?
Customer quality, value and satisfaction
Hard
A.Perceived quality may fall despite improved conformance quality
B.Perceived quality is unaffected because usability is not quality
C.Perceived quality must equal the manufacturer's inspection score
D.Perceived quality must rise because defect frequency declined
Correct Answer: Perceived quality may fall despite improved conformance quality
Explanation:
Conformance improved, but customer-perceived quality is multidimensional. Reduced usability and slower task completion may outweigh the benefit of fewer defects.
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54A resort improves its actual service performance, but its new campaign promises an unrealistically flawless experience. Post-visit satisfaction subsequently declines. Which explanation best reconciles these observations?
Customer quality, value and satisfaction
Hard
A.Improved performance eliminated customers' ability to compare
B.Higher service quality necessarily reduced perceived customer value
D.Promotion raised expectations faster than performance improved
Correct Answer: Promotion raised expectations faster than performance improved
Explanation:
Satisfaction reflects performance relative to expectations. Exaggerated promises can increase the comparison standard enough to create negative disconfirmation even when actual performance improves.
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55A software provider can spend $20 per customer either on a feature valued at $25 by 30% of users or on reducing setup effort by an amount valued at $10 by every user. Ignoring spillovers and assuming values are additive, which choice creates more average customer value?
Customer quality, value and satisfaction
Hard
A.Choose the feature because its average benefit is $12.50
B.Choose setup reduction because its average benefit is $10
C.Choose setup reduction because its average benefit is $20
D.Choose the feature because its individual benefit is $25
Correct Answer: Choose setup reduction because its average benefit is $10
Explanation:
The feature's average perceived benefit is , while setup reduction provides an average benefit of . Equal spending therefore creates more average value through setup reduction.
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56A manufacturer negotiates contracts for raw materials, office equipment, and cloud services used across multiple departments. In Porter's value chain, where is this contract-negotiation capability primarily classified?
Michael E. Porter's chain analysis model
Hard
A.Procurement, a support activity
B.Operations, a primary activity
C.Firm infrastructure, a support activity
D.Inbound logistics, a primary activity
Correct Answer: Procurement, a support activity
Explanation:
Procurement concerns acquiring inputs used throughout the value chain, not merely receiving or storing materials. It is therefore classified as a support activity.
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57A company tightens production tolerances, increasing operations cost by $3 million but reducing warranty and repair costs by $5 million with no change in customer value. What does Porter's value-chain logic imply?
Michael E. Porter's chain analysis model
Hard
A.The change creates differentiation only if the selling price falls
B.The change affects support activities but not primary activities
C.The change improves margin through an interactivity linkage
D.The change destroys margin because operations cost increases
Correct Answer: The change improves margin through an interactivity linkage
Explanation:
Operations and after-sales service are linked. The million increase produces million in savings, improving total margin by million even though one activity becomes more expensive.
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58A retailer shares real-time demand data with suppliers, allowing suppliers to redesign package sizes and reducing the retailer's handling costs. Which concept best captures this source of advantage?
Michael E. Porter's chain analysis model
Hard
A.Cost transfer within the retailer's firm infrastructure
B.Automation within the retailer's operations activity
C.Differentiation within outbound logistics alone
D.Optimization across the broader value system
Correct Answer: Optimization across the broader value system
Explanation:
The advantage arises from coordinating the supplier's value chain with the retailer's value chain. Porter describes these interfirm relationships as part of the broader value system.
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59For a software company, engineers develop a reusable recommendation algorithm, while customer agents help subscribers configure recommendations after purchase. How should these activities be classified in Porter's model?
Michael E. Porter's chain analysis model
Hard
A.Procurement and marketing, respectively
B.Firm infrastructure and inbound logistics, respectively
C.Technology development and service, respectively
D.Operations and outbound logistics, respectively
Correct Answer: Technology development and service, respectively
Explanation:
Creating the algorithm is technology development, a support activity. Assisting customers after purchase is service, one of Porter's primary activities.
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60A business has total customer value of million, primary-activity costs of million, and support-activity costs of million. Consolidating procurement saves million but raises inbound-logistics cost by million, with customer value unchanged. What is the new margin?
Michael E. Porter's chain analysis model
Hard
A. million
B. million
C. million
D. million
Correct Answer: million
Explanation:
Initial margin is million. Net cost savings are million, so the new margin is million.
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