ITPEC IP October 2025 Question 83
ITPEC IP October 2025 — Question 83 of 100
PPM analysis prioritizes investment across a product or business portfolio — it classifies offerings using market growth and relative market share.
Product Portfolio Management places businesses into categories such as stars, cash cows, question marks, and dogs. Their market attractiveness and competitive position guide decisions to invest, maintain, harvest, or withdraw resources.
Answer (c)
Why not others:
- (a) Cluster analysis groups similar observations but is not the standard portfolio-investment matrix
- (b) RFM analysis segments customers by recency, frequency, and monetary value
- (d) Principal component analysis reduces correlated variables to fewer components
Key rule: Use PPM for resource allocation among products or businesses; use RFM for customer value and statistical methods for data structure.
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