Gadgetbug, an electronic gadgets company, has established itself as one of the industry leaders. The company has been facing competition from new entrants. The new entrants offer gadgets in different colors, with compelling artwork embossed on the cases. Seeing the interest in this market, Gadgetbug introduced its own range of uniquely designed gadgets. In this scenario, Gadgetbug's attempt to cater to the different segments of customers to deter competition demonstrates:
A) price signaling.
B) product proliferation.
C) a harvest strategy.
D) a limit price strategy.
E) diseconomies of scale.

Question

Quizplus · Accepted Answer

Gadgetbug's introduction of its own range of uniquely designed gadgets indicates product proliferation, which is a strategy of introducing new variations of a product to cater to different customer segments and stay ahead of the competition.

Gadgetbug, an Electronic Gadgets Company, Has Established Itself as One