Question

Pager, a simple personal device for short messages, became famous in the 1990s. Troveron Communications launched a pager in the early twenty-first century. Due to the introduction of mobile phones and text messaging, the pager industry was on a decline. The company's innovations were not well received by the market and the product was a failure. Which of the following is the most likely reason for the product's failure in this case?
A) poor launch timing of the product
B) a small and fragmented target market
C) high cost of development
D) social and economic constraints
E) hasty product development

Answer 1

Answer:

C) high cost of development

Explanation:

Pagers were launched as an innovative idea, but were quickly faced with the development of mobile telephony, which enabled cell phones to provide messaging service. Thus pager technology quickly became obsolete. Since this type of device has a high development cost, the continuity of this product has become unfeasible in the face of competition from phones.