ABC is a private limited company. It makes nuts and bolts, which are
producer products, and they are sold to large car manufacturers. The sales
of its products are at a high and steady level. The products are made to the
exact specifications of the car companies and they are not sold to any other
customers. Some other makers of nuts and bolts have developed new products
which are made using new technology and lighter materials.
a Define 'producer product.
b ABC makes nuts and bolts. Identify two other examples of producer
goods.
c Outline two characteristics of the packaging of ABC's products.
d Explain two decisions ABC's managers might take as one of the
company's products reaches the saturation stage of the product
life cycle.
e Do you think ABC should consider developing new products? Justify
your answer.
milexis