Which Statement Is Most Likely True About Shifting from a Product-Based

Multiple Choice

Which statement is most likely true about shifting from a product-based to a service-based business?

A) Adding services tends to decrease overall sales because a firm needs to increase its promotional spending.
B) Services require less integration and communication between supplier and customer, which increases profitability.
C) Services tend to cause an erratic flow of revenue because they are less resistant to economic cycles than products.
D) Services are typically onetime purchases, unlike products, which are purchased often.
E) Services increase the level of differentiation with competitive offerings.