Scenario 3.2 Use the following to answer the question.
Clayton Homes, a mobile home manufacturer since 1934, introduced its new i-House in 2007. The i-House is one of the first of its kind, designed as an updated, modern version of the modular home, offered as a base home plus add-ons known as "pods." The base home is a one-bedroom, one-bath, 734-square-foot version at a price of around $80,000. There is also a 1,000-square-foot version for around $100,000. All versions may add on the additional one-room pods, which are shipped to your location and constructed on site. The homes offer galvanized metal roofing, corrugated steel siding, VOC-free paints, and a "butterfly" roof that collects rainwater. The i-House uses 30% less energy than a similar square-foot home and offers "green" characteristics of solar panels, tankless water heaters, and low-flow faucets. In addition, it comes with bamboo flooring, a renewable resource. The modular, prefabricated design offers endless options for creating the customer's home, and its engineered building system cuts down on construction waste. Due to the "green effects" of the i-House, the state governments have given it a tax abatement for any sales taxes.
Refer to Scenario 3.2. Clayton Homes is revising its marketing strategy for the i-House due to the recent recession. Which of the following is the best action for promoting the i-House in the near future?
A) Emphasize the technology of the i-House.
B) Focus on the "green" qualities of the home and target environmentally-conscious individuals.
C) Significantly reduce advertising expenditures to create an exclusive image.
D) Decrease production until the economy improves.
E) Significantly reduce the prices on the company's product offerings.

Question

Quizplus · Accepted Answer

During a recession, consumers may be more conscious of their spending habits and may prioritize eco-friendliness. Therefore, emphasizing the "green" qualities of the i-House and targeting environmentally-conscious individuals may be the best action for promoting the product in the near future. Option A may not be as effective as technology may not be a top priority for consumers during a recession. Option C may harm the company's sales as reducing advertising expenditures may result in fewer potential customers becoming aware of the product. Option D may harm the company's long-term growth potential. Option E may attract more customers but may ultimately harm the company's profitability.