Certified Production & Operations Manager (POM) Practice Exam

To grow market share, what must an organization do?

1. Reduce prices

2. Broadening its mission statement

3. Exceed minimum standards of acceptability for its products or services

4. Implement frequent advertising campaigns

The correct answer is: Exceed minimum standards of acceptability for its products or services

One effective strategy for an organization to grow its market share is to exceed the minimum standards of acceptability for its products or services. This approach involves not only meeting customer expectations but surpassing them, thereby enhancing customer satisfaction and loyalty. When a company focuses on delivering higher quality or additional features, it differentiates itself from competitors. This differentiation can lead to increased word-of-mouth recommendations, repeat business, and an ability to attract new customers who are looking for superior options in the market. Essentially, by prioritizing exceptional quality and performance, an organization can establish a strong value proposition that contributes to capturing a larger portion of the market. While reducing prices, broadening a mission statement, or implementing frequent advertising campaigns may contribute to market share growth, they do not directly address the core need for quality and satisfaction that drives customer preference and loyalty in a competitive landscape.