Scenario 10-3 Choice Homes Inc. Built Its Reputation by Building High-Quality New

question 66

Multiple Choice

Scenario 10-3
Choice Homes Inc. built its reputation by building high-quality new homes, often at prices less than "used" ones. Choice Homes used mass-purchasing power, innovative high-tech communications among employees to coordinate the building process, and other entrepreneurial strategies to hold costs down. Its homes are primarily targeted at first-time homeowners-to-be in an effort to get people out of apartments so they can experience the dream of home ownership for the same price as rent. Choice Homes later developed the "Choice Classic" brand name for higher-end homes targeted at wealthier dual-income couples. The Choice Classic name was designed to capitalize on the reputation of Choice Homes, especially for current Choice home owners who are ready to move up to a larger home. Recently, Choice Homes started a third line of homes called "Reflections," which are expensive, custom-designed homes located in exclusive, prestigious neighbourhoods.
-Refer the scenario. What do the three different brands of homes (Choice, Choice Classic, and Reflections) represent for the firm?

• A)its line portfolio
• B)its mix depth
• C)its line breadth
• D)its product line

---

Definitions:

Halo Effect

A cognitive bias in which an individual's overall positive or negative impression of a person, brand, or product influences their feelings and thoughts about that entity's specific traits.

Pygmalions

A phenomenon where higher expectations lead to an increase in performance.

Managers

Managers are individuals responsible for planning, leading, organizing, and controlling resources and teams to achieve organizational goals.

Pygmalion

The phenomenon where higher expectations from leaders or teachers lead to an increase in performance among students or employees.