Assess the effectiveness of a product or service

Product testing helps a business to find out if customers would buy the product

• True

• False

How could Apple test the effectiveness of their products?

• Focus group - see how customers use the iPhone

• Create a YouTube video

Customer satisfaction surveys show 95% of customers are not happy with quality of chocolate

• The product is effective

• The product is not effective

No customers complained about the room cleaning service in the hotel

• The service is effective

• The service is ineffective

97% of SHEIN customers returned a dress because the product did not suit them. What should SHEIN do?

• Keep selling the product

• Stop selling the product

90% of Netflix subscribers renewed their subscription plan from November 2023 - December 2023.

• Their services are effective

• Their services are ineffective

What is the churn rate?

• The annual % rate of new customers subscribing to a service or stop using a product.

• The annual % rate which customers stop subscribing to a service or stop using a product.

From 2021 - 2022, Netflix noticed their churn rate decreased by 20%. What does this mean?

• The effectiveness of the services are increasing

• The effectiveness of the services are decreasing

From 2021 - 2022, Netflix noticed their churn rate decreased by 20%. What should Netflix do?

• Sell the same services to existing customers

• Think of new services to retain existing customers

A business can test the effectiveness of their products using customer satisfaction surveys and calculating the churn rate

• True

• False