Question

Production concept is __________.

a. the idea that consumers will favor products that are available and highly affordable; therefore, the organization should focus on improving production and distribution efficiency
b. the idea that consumers will favor products that offer the most quality, performance, and features; therefore, the organization should devote its energy to making continuous product improvements
c. the idea that consumers will not buy enough of the firm's products unless the firm undertakes a large-scale selling and promotion effort
d. a philosophy in which achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions better than competitors do

Answer 1

The production concept is the business philosophy that consumers prefer products that are easily available and affordable, prompting companies to focus on high efficiency in production and distribution to minimize costs.

Step-by-step explanation:

The production concept is a. the idea that consumers will favor products that are available and highly affordable; therefore, the organization should focus on improving production and distribution efficiency. Following the production concept, a company believes that through economies of scale and efficient production methods, they can lower the cost per unit.

This concept suggests that an organization should concentrate on optimizing its production process and infrastructure to be capable of mass production at a low cost, similar to how warehouse stores like Costco or Walmart operate.

Doing so allows for productive efficiency, which means producing goods without waste, at the lowest possible average cost, and on the production possibility frontier.

Such a cost-centric approach might be more suitable in markets characterized by price-sensitive customers who prioritize basic product functionality and low prices over additional features or enhancements. It's also applied when the aim is to increase market share by making products widely accessible and affordable.