When a firm produces only a single product or service and attempts to sell it to two or more market segments, it avoids
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 selling a single product to multiple market segments, the firm avoids the additional costs associated with developing and producing different versions of the product for each segment.

When a Firm Produces Only a Single Product or Service