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

question 28

Multiple Choice

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

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Definitions:

Volume Discounts

Reduced prices offered to customers who purchase in large quantities, incentivizing bulk buying.

Revenue

The total amount of income generated by the sale of goods or services related to a company's primary operations.

Self-sort

A process where individuals or entities categorize themselves based on personal criteria or preferences, often seen in markets or social groupings.

High-end

Products or services that are of superior quality and typically sold at a higher price than comparable items.