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

Question

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

Quizplus · Accepted Answer

Lowering a product's quality allows the firm's manufacturer to lower the price, which can make the product more accessible and affordable to a wider range of consumers. However, reducing quality does not typically result in increased brand loyalty or opportunities for market segmentation, and it is not a strategy that helps firms cater to the upper classes effectively. In fact, reducing quality may erode brand loyalty and damage the brand image if consumers perceive the product to be of lower value or quality.

Reducing a Product's Quality