A mobile phone manufacturing company observes that the main reason for an abrupt fall in sales volume is the unconventional design of their phones that consumers found inconvenient and unattractive. The findings prompt the company to adopt a new strategy. They redesigned the product models keeping the requirements of the end-user in mind. According to the expectancy value-model, the company's strategy can be termed as ________.
A) psychological repositioning
B) real repositioning
C) competitive depositioning
D) physiological depositioning
E) prescriptive method

Question

Quizplus · Accepted Answer

The company's strategy can be classified as real repositioning as they have redesigned their products based on customer requirements to overcome the previous issues leading to a fall in sales volume. The expectancy-value model suggests that companies can reposition themselves in the market by changing the perceptions of the customers. This can be done either through real or psychological repositioning. Real repositioning involves making changes in the company's products, services, or marketing to cater to the customer's needs. On the other hand, psychological repositioning involves changing the customers' perceptions without actually making any changes to the product. Since the company has physically redesigned their product models, their strategy aligns with real repositioning.

A Mobile Phone Manufacturing Company Observes That the Main Reason