Trading Down Refers to ________ When Repositioning a Product

question 2

Multiple Choice

Trading down refers to ________ when repositioning a product.

• A) reducing the number of features, qualities, or price
• B) reducing the amount of product carried as inventory
• C) reducing the number of product items in a product line
• D) redirecting marketing resources from a "cash cow" target market to one that is not performing as well in the hopes of increasing sales and profits
• E) encouraging consumers through the use of coupons and deals to purchase a firm's lower-priced products

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Definitions:

Total Cost

The complete cost of production, encompassing both fixed and variable costs, for a good or service.

Average Fixed Cost

The fixed costs of production divided by the quantity of output produced; decreases as production increases.

Average Variable Cost

The per unit cost of variable inputs divided by the total quantity of output produced, reflecting the variable cost of production.

Marginal Revenue

The additional income generated by increasing product sales by one unit.