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Kelvin Electronics Is Known for High-End and Expensive Electronics Targeted

question 32

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Kelvin Electronics is known for high-end and expensive electronics targeted to prestigious consumers. Last fall, Kelvin Electronics introduced a mid-priced line of audio products because it knew this would have great potential to appeal to a large consumer market. Kelvin assumed consumers would be pleased to have this more affordable option and decided not to market it separately but to let sales grow from existing customers. It was surprised when sales were minimal and ultimately, the company dropped the lower-priced products. When evaluating segment attractiveness, what aspect did Kelvin fail to consider?


Definitions:

Linguistic Relativity Hypothesis

The concept that the structure of a language influences its speakers' world view or cognition, and thus people's perceptions are relative to their spoken language.

Cognitive Linguistic Hypothesis

A theory suggesting that language influences or shapes the speaker's worldview and cognitive processes.

Intonation

The variation of pitch while speaking, which can affect the meaning of words and sentences.

Pitch

The auditory perception of the frequency of sound waves, determining how high or low a sound seems.

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