Question

What factors should be considered when deciding to drop a product or segment?

Answer 1

When deciding to drop a product or segment, factors such as taste shift, population changes, income drops, and price of substitutes falling should be considered.

Step-by-step explanation:

When deciding to drop a product or segment, several factors should be considered:

1. Taste shift to lesser popularity: If the product is no longer in demand or considered outdated by consumers, it may be wise to drop it.
2. Population likely to buy drops: If the target market for the product is shrinking or losing interest, it may be necessary to discontinue the product or segment.
3. Income drops (for a normal good): If consumers' disposable income decreases, they may be less likely to purchase luxury or non-essential goods, making it reasonable to consider dropping the product.
4. Price of substitutes falls: If cheaper alternatives become available to consumers, it can lead to decreased demand for the product, warranting consideration of dropping it.