An automobile manufacturer creates high-performance products, which are new in the market. Since the product offers features that are unique, customers were willing to pay a high price for the product. However, after a couple of months, other brands offered the same features at a lower price, which made the innovators reduce the price as well. Which of the following innovations is being exemplified in this scenario?
A)A disintermediation strategy
B)A low-end disruptive innovation
C)A customization strategy
D)A high-end disruptive innovation

Question

Quizplus · Accepted Answer

The scenario exemplifies a high-end disruptive innovation, where a new product with unique features is introduced at a high price point, but eventually faces competition from other brands offering similar features at a lower price. This leads to a reduction in the price of the innovator's product.

An Automobile Manufacturer Creates High-Performance Products, Which Are New in the Market