Trading Down Refers to

question 41

Multiple Choice

Trading down refers to

• A)reducing the number of features, qualities, or price.
• B)reducing the amount of product carried as inventory.
• C)reducing the number of products carried in a product line.
• D)redirecting marketing resources from a large producing target market to one that is not performing as well.
• E)redirecting marketing resources away from target market segments that are not performing up to expectations.

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Definitions:

Break-even Point

The break-even point is the level of production or sales at which total revenues equal total expenses, resulting in no net profit or loss.

Margin of Safety

The difference between actual or expected sales and sales at the break-even point.

Sales Revenue

The income received by a company from its sales of goods or services, before any expenses are deducted.

Unit Selling Price

The price levied for an individual unit of a product or service.