Cell phone manufacturer LZT has to choose between two options for sourcing parts: Japan-based Keiko Inc. and U.S.-based Global Tech. How can Keiko reduce the total customer cost for LZT?
A) absorbing some risk by offering a warranty
B) improving the functional aspects of the products
C) augmenting the psychological benefits of the products
D) training service personnel to improve their skills
E) investing in brand building for the products

Question

Quizplus · Accepted Answer

By offering a warranty, Keiko Inc. can absorb some of the risk associated with product failures or defects, thereby reducing the total cost of ownership for LZT by potentially lowering future repair or replacement costs.

Cell Phone Manufacturer LZT Has to Choose Between Two Options