An automobile manufacturing firm consolidates all its suppliers to produce a new automobile that is a minor variant from its older version in terms of design and performance. The intention of the firm in doing so is to provide loyal customers automobiles with similar performance but at a lower price. According to authors Crawford and DiBenedetto, this new product falls into the category of _____.
A) cost reductions
B) price redemptions
C) repositionings
D) price exemptions

Question

Quizplus · Accepted Answer

The new product is a minor variant aimed at reducing costs while maintaining similar performance, which aligns with the category of "cost reductions" as defined by Crawford and DiBenedetto.

An Automobile Manufacturing Firm Consolidates All Its Suppliers to Produce