Question

Which 3 statements are true regarding product categories?

a) They are static and never change
b) They are influenced by consumer trends
c) They have no impact on pricing
d) They only apply to physical products

Answer 1

Product categories are influenced by consumer trends, have no impact on pricing, and can apply to both physical products and services.

Step-by-step explanation:

The correct statements regarding product categories are:

1. They are influenced by consumer trends: Product categories can change over time based on the changing preferences and needs of consumers.
2. They have no impact on pricing: Product categories do not directly determine pricing. Pricing is determined by factors such as production costs, competition, and demand.
3. They only apply to physical products: Product categories can apply to both physical products and services. For example, there are different categories for cars, electronics, clothing, and even software services.