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 line stretch
B) product line contraction
C) cannibalization strategy
D) upward line stretch
E) value stretch

Question

Quizplus · Accepted Answer

Mercedes introduced a lower-priced model (C-Class at $30,000) without affecting the sales of its higher-priced models, which is an example of a downward line stretch.

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