Certificate in Business Data Analytics (CBDA) — Question 7

Insights based on the data collected indicate that a multi-national company could increase its sales of a mature product by reducing its price by 20% which would result in increased revenues of 2% over a 6-month period. The team recommends this as an appropriate goal for its organization.
This is considered a good goal because:

Answer options

• A. It meets all the criteria for a well-defined objective
• B. The organization can derive additional revenue from the product
• C. Management will be pleased that the mature product can still contribute to revenue
• D. It indicates that the company does not have to incur costs associated with retiring this product

Correct answer: B

Explanation

The correct answer is B because the primary benefit of lowering the price is the potential for increased revenue. Option A is incorrect as it doesn't directly address revenue; option C, while true, is not the main point; and option D is misleading, as it does not relate to the goal of increasing sales through price reduction.