Question

Select the correct answers. For which product would the producer keep a high profit margin and offer after-sales service? A. soap B. gasoline C. refrigerator D. bread'

Answer 1

The producer would keep a high profit margin and offer after-sales service for refrigerator.

Option C

Explanation:

After-sales services plays a key role in customer retention and satisfaction. It helps to improve the long-term brand loyalty and image of the firm. Offering after sales service can help in convincing the customers to buy the service produced in the firm in the first place.

Example: Companies may offer after sales service (mostly the installation process) for the products like television, refrigerator or computer software.

Mostly for the products that includes post sales services the sales price will be higher as compared to the other products. The profit margin for the company will be higher with the sales of these kind of products.

From the given options, soaps, gasoline or bread are consumables and does not have or require any post sales services.

The home appliance, refrigerator has high end profit margin and post sales services.