Certified Supply Chain Professional (CSCP) Practice Exam

Which of the following is NOT a component of e-business effectiveness?

1. Maximizing efficiency

2. Customer engagement

3. Minimizing product diversity

4. Sensible return policies

The correct answer is: Minimizing product diversity

Minimizing product diversity is not recognized as a component of e-business effectiveness because it typically runs counter to the objective of appealing to a broad range of customers and meeting varied market demands. E-business effectiveness emphasizes maximizing efficiency, fostering customer engagement, and implementing sensible return policies that enhance customer satisfaction and loyalty. By minimizing product diversity, a business might limit its ability to cater to different customer preferences and market segments, which could hinder its competitive position in the online marketplace. Effective e-business strategies often involve offering a wide array of products to attract more customers and drive sales. This broadens the potential customer base and can lead to increased revenue, whereas focusing solely on a limited product range may not capture diverse customer needs.