Question

Carl's department has been introducing new goods and services on a rapid-fire basis over the past two years. However, business is down, largely because customer feedback on the usefulness, reliability, and durability of the new goods and services is negative. Carl's division manager, Vince, reviews the situation and concludes that the innovation of Carl's department is good; however, ________ is poor.

A) responsiveness
B) quality
C) marketing
D) speed
E) cost competitiveness

Answer 1

Vince's assessment points to poor quality of the new goods and services as the main issue causing negative customer feedback and declining business.

Step-by-step explanation:

Considering the negative feedback on the usefulness, reliability, and durability of the new goods and services from Carl's department, it's clear that innovation isn't the primary issue; rather, it is the quality of these offerings that is concerning. When customer satisfaction declines due to product attributes such as reliability and durability, this points towards problems with quality rather than with aspects such as responsiveness, marketing, speed, or cost competitiveness.

In the context of the clues provided, where the need for constant innovation can compromise the durability and reliability of goods, the most fitting conclusion for Vince to arrive at is that Carl's department may be innovating at the expense of ensuring high-quality products. Poor quality can result in a rise in inventories, as products fail to meet consumer demand and satisfaction, leading to losses. Hence, Vince's statement would most likely conclude with the assertion that {
quality is poor.}