Dropping an unprofitable product immediately is the best strategy when
A) all advertising and promotional efforts have been exhausted.
B) customers have a negative outlook on other products.
C) losses are too great to prolong the product's life.
D) the product's performance cannot be improved.
E) there is low compatibility with the firm's business strategies.

Question

Quizplus · Accepted Answer

When losses are too great and there is no hope for improvement, it is best to drop the unprofitable product immediately. Continuing to prolong the product's life will only lead to further losses and potentially harm the overall business.

Dropping an Unprofitable Product Immediately Is the Best Strategy When