Firms Offer Different Variations of the Same Basic Product or Service

question 67

Multiple Choice

Firms offer different variations of the same basic product or service to both, high-end and low-end segments. Gap's Banana Republic chain sells blue jeans for $58, whereas its Old Navy stores sell a slightly different version for $22. This is an example of:

• A)one product and multiple market segments.
• B)two-tier marketing strategy.
• C)price discrimination.
• D)mass customization.

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Definitions:

Hybrid Compensation-Level Strategy

A remuneration approach that combines elements of both fixed salaries and variable pay based on performance.

Industrial Sectors

Categories of the economy based on the type of activity performed, such as manufacturing, service, agriculture, and technology.

Employee Groups

Categories or clusters of employees within an organization who share similar job functions, levels, or characteristics.

Executive Compensation Packages

A combination of salary, bonuses, shares, options, and other benefits provided to high-level managers and executives of a company.