Question

In the case of cellular phones, the physical product is practically given away to gain the phone services contract. This could be because

A) cellular phone companies do not view market share as a strategic goal.

B) the cost of production of cellular phones is very low.

C) the revenues from associated services exceed the revenues from the cellular phones.

D) the margins on after-sales services for cellular phones is low.

E) consumers sometimes buy a variety of services that are not associated with products.

Answer

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