When contemplating a product deletion, a firm studies customer migration patterns to determine: the profit contribution of the product to the firm. whether the product has outgrown its usefulness. whether the product has reached a level of maturity and saturation in the market. whether customers of the product would switch to other substitute products marketed by the same firm.

Question

Jax Riggs

Business

6 August, 18:43

When contemplating a product deletion, a firm studies customer migration patterns to determine: the profit contribution of the product to the firm. whether the product has outgrown its usefulness. whether the product has reached a level of maturity and saturation in the market. whether customers of the product would switch to other substitute products marketed by the same firm.

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Bowers · Answer 1

Answer: whether customers of the product would switch to other substitute products marketed by the same firm.

Explanation:

Customers regular move from one good to another or from one good to it's substitutes in a process called Customer Migration.

There are various reasons for this such as affordability, change in technology, trends and the like.

When a company contemplates ending a product line and decides to study customer migration patterns, they are checking to see what the customer will switch to when the product is deleted. If they make substitutes to the product to be deleted, they will be checking to see if the customers will switch to these substitutes if the product line is ended.