DECA Retail Merchandising Practice Exam

Which type of information systems primarily focus on the product itself?

1. Customer centric

2. Product centric

3. Market driven

4. Service oriented

The correct answer is: Product centric

The type of information systems that primarily focus on the product itself is product-centric. This approach emphasizes understanding the features, specifications, and lifecycle of a product, allowing businesses to streamline their operations and enhance product development. Such systems gather and analyze data related specifically to the product, including manufacturing processes, inventory management, and sales performance, resonating with the idea of maximizing product effectiveness and profitability. In contrast, customer-centric information systems focus on the needs and behaviors of the customers, aiming to improve customer satisfaction and engagement rather than concentrating solely on the product. Market-driven systems prioritize trends and consumer demands to adapt business strategies, while service-oriented systems emphasize delivering and improving services rather than the products themselves. Each of these approaches has its value, but they do not center around the intrinsic qualities of the product as a product-centric system does. This distinction defines why the product-centric classification is the most accurate choice in this context.