In the context of product modification, reducing a product's quality:
A)provides new opportunities for market segmentation.
B)lets a manufacturer lower the price of the product.
C)results in increased brand loyalty or new opportunities for market segmentation.
D)helps firms cater to the upper classes effectively.

Question

Quizplus · Accepted Answer

By reducing a product's quality, a manufacturer can lower the cost of production, allowing them to lower the price of the product. This can help them compete with lower-priced competitors and reach a different price point in the market while still maintaining profitability. However, it should be noted that reducing quality has its drawbacks, such as potentially losing customers who value quality over price.

In the Context of Product Modification, Reducing a Product's Quality