Trading Up Refers to

question 53

Multiple Choice

Trading up refers to

• A) adding product features but reducing the price.
• B) changing the distribution channel members to higher-service-quality retailers.
• C) adding value to the product (or line) through additional features or higher-quality materials.
• D) reallocating marketing resources from a poor-performing target market to one that demonstrates greater potential for future growth.
• E) offering consumers a discount when they purchase a more expensive version of the product.

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Definitions:

Committed Cost

Expenses that a company has already made or obliged itself to make in the future, often fixed and not easily changed.

Minimizing Loss

The strategy or process of taking actions to reduce the amount of money or resources being wasted or lost, especially in business or economic activities.

Efficient Scale

The level of production that minimizes the average total cost of producing a product or service.

Long-Run Equilibrium

A state in which all firms in a market are making zero economic profit, leading to a situation where no firms enter or exit the industry.