Question detail

CloudCart serves tourists while improving quality control; the case evidence includes average order value of ?4,422, sales of 142 units, and a 13% change in costs or demand. Which option best applies Explain benefits and risks of developing new products?

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At a glance

MCQ

Type

practice

Style

Topic

The elements of the marketing mix: price, product, promotion and place

Question

A. Use product to judge supplier lead time, lenders impact, and the business objective in Product.
B. Give only a definition of The elements of the marketing mix: price, product, promotion and place without using the case evidence.
C. Treat fixed and variable costs as identical and ignore the effect on lenders.
D. Choose the largest sales figure without checking costs, finance, or context.

Answer

The correct option is: Use product to judge supplier lead time, lenders impact, and the business objective in Product.

Explanation

This option works because Use product to judge supplier lead time, lenders impact, and the business objective in Product. The case evidence gives ?5,922, 142 units, and 13%, so the answer must explain the commercial effect rather than repeat a definition. The distractors are weaker because they confuse fixed and variable costs, miss the lenders, or ignore the business objective.

Common mistake

Product common mistake 1

Giving a vague answer instead of directly addressing: Explain benefits and risks of developing new products..

Answer by clearly explaining how to explain benefits and risks of developing new products..

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FreshFork serves local families while changing supplier; the case evidence includes gross profit margin of ?10,145, sales of 325 units, and a 22% change in costs or demand. Which option best applies Explain benefits and risks of developing new products?