A Multinational Tire Manufacturer Introduces a Line of Premium, High-Priced

question 4

Multiple Choice

A multinational tire manufacturer introduces a line of premium, high-priced tires that can handle extreme temperatures. The tires are only marketed in the Middle East and were designed with the climatic conditions of that region in mind. The manufacturer is pursuing a ________ strategy.

• A)focused differentiation
• B)focused low-cost
• C)general differentiation
• D)general low-cost
• E)low-cost and a differentiation

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Definitions:

Net realizable value

The estimated selling price of goods, minus the cost of their sale or disposal.

Damaged merchandise

Goods that have been physically harmed or impaired, reducing their value or usefulness.

Below cost

describes selling a product at a price less than its production or acquisition cost, often to clear inventory or attract customers.

Consignment

involves goods being given to a third party to sell, with the owner retaining ownership until the items are sold.