ITPEC IP October 2022 Question 81

Source exam: ITPEC IP October 2022Topic: Business Strategy Management

ITPEC IP October 2022 — Question 81 of 100

PPM analysis prioritizes investment by comparing each product's market growth rate and relative market share. Product Portfolio Management places businesses or products into categories such as stars, cash cows, question marks, and dogs, helping management allocate limited funds according to market potential and competitive strength.

Answer (c)

Why not others:
- cluster analysis groups similar observations

- RFM analyzes customers by recency, frequency, and monetary value

- principal component analysis reduces many correlated variables to major components

Key rule: PPM is the portfolio tool for resource allocation using market growth and relative market share.

AI-generated — may contain errors

The original exam layout is preserved in the image so diagrams, formulas, tables, and code remain accurate.

This question comes from an official ITPEC past paper. ITPEC Practice is an independent study tool and is not affiliated with ITPEC. See the official IP past-paper collection or Report an issue.