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How do industrial goods failure rates compare with those for consumer goods?
AIndustrial goods failure rates tend to be lower
BIndustrial goods failure rates tend to be higher
CThe two failure rates are almost exactly equal
DIndustrial goods almost never fail in the market
Answer & Solution
Correct answer: A. Industrial goods failure rates tend to be lower
1. Consumer goods in the household and grocery categories fail at rates approaching 80 percent.
2. Industrial goods failure rates tend to be lower than those for consumer goods.
3. Business buyers set specifications first, which reduces the risk of a mismatch.
4. Lower is not the same as never, so the claim that they almost never fail goes too far.
_Source: OpenStax Introduction to Business (CC BY 4.0), Ch 11 "Creating Products and Pricing Strategies to Meet Customers' Needs", section 11.7 Creating Products That Deliver Value_
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