Which of the following statements is true of an organization's product mix?

A. Firms widen their product mix to capitalize on established reputations.

B. A wide product mix decreases sales and profit-making potential.

C. A wide product mix means that the product line is deep.

D. All product items in a product mix follow a standard marketing strategy.

Question

Business

Gunnar Medina

7 August, 15:31

Which of the following statements is true of an organization's product mix?

A. Firms widen their product mix to capitalize on established reputations.

B. A wide product mix decreases sales and profit-making potential.

C. A wide product mix means that the product line is deep.

D. All product items in a product mix follow a standard marketing strategy.

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Answers (1)

Know the Answer?

Mylie Mcknight · Answer 1

Answer: Option A

Explanation: In simple words, product mix refers to the variety of liner of product that a company offers to its customers in the market.

Many organisations with strong fund base tries to diversify their business by entering into established industries,. Such organisations starts their business initially at a very large level.

Hence product mix is widen to capitalize established reputations.