Mercedes was able to successfully introduce its C-Class car at $30,000 without injuring its ability to sell other Mercedes cars for $100,000 or more. Mercedes implemented a(n) ________.
A) downward product line stretch
B) product line contraction
C) cannibalization strategy
D) upward product line stretch
E) value stretch

Question

Quizplus · Accepted Answer

Mercedes introduced a lower-priced option (the C-Class at $30,000) to its existing product line without negatively impacting the sales of its higher-priced models. This strategy is known as a downward product line stretch, where a company expands its product offerings by adding lower-priced items to attract a broader customer base or to fend off lower-priced competitors, without harming the brand's premium image or the sales of its higher-priced products.

Mercedes Was Able to Successfully Introduce Its C-Class Car at $30,000