Bauman Flooring found a supplier of very inexpensive fibers that could be used to produce low-grade carpeting at a very low cost. Because Bauman had been facing stiff competition in the medium-grade carpet industry, it started using the new material in all of its carpeting and reducing its prices. This is an example of a(n)
A) aesthetic modification.
B) line extension.
C) material adjustment.
D) functional modification.
E) quality modification.

Question

Quizplus · Accepted Answer

Bauman Flooring's decision to use very inexpensive fibers to produce low-grade carpeting at a lower cost is an example of a quality modification. This involves changes in the product's quality level, in this case, lowering it to reduce costs and prices.

Bauman Flooring Found a Supplier of Very Inexpensive Fibers That