Gadgetbug, an electronic gadgets company, has established itself as one of the industry leaders.The company recently has been facing some amount of competition from certain new entrants.The new entrants offer gadgets in different colors and with interesting artwork embossed.Recognizing that there is a special market for gadgets that are designed uniquely, Gadgetbug has now introduced its own range of uniquely designed gadgets.In this scenario, Gadgetbug's attempt to cater to all the different segments of customers to deter competition demonstrates:
A)price signaling
B)product proliferation
C)harvest strategy
D)limit price strategy
E)diseconomies of scale

Question

Gadgetbug, an electronic gadgets company, has established itself as one of the industry leaders.The company recently has been facing some amount of competition from certain new entrants.The new entrants offer gadgets in different colors and with interesting artwork embossed.Recognizing that there is a special market for gadgets that are designed uniquely, Gadgetbug has now introduced its own range of uniquely designed gadgets.In this scenario, Gadgetbug's attempt to cater to all the different segments of customers to deter competition demonstrates:
A)price signaling
B)product proliferation
C)harvest strategy
D)limit price strategy 
E)diseconomies of scale

Quizplus · Accepted Answer

Gadgetbug's introduction of its own range of uniquely designed gadgets is an example of product proliferation. The company is attempting to expand its product line to cater to different segments of customers and deter competition.

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