The Strategy of Trading Down Involves __________

question 270

Multiple Choice

The strategy of trading down involves __________.

• A)adding product features but using lower quality product materials
• B)reducing product features and but using higher quality product materials or ingredients
• C)reducing the number of features,quality,or price of a product
• D)seeking a less price-sensitive target market
• E)changing to a mass merchandiser retailer like Walmart or Target

Recognize the purposes and limitations of financial markets.

Distinguish between different approaches to portfolio construction.

Learn the characteristics and expectations associated with debt securities.

Understand the historical performance of various investment types.

---

Definitions:

Long-Term Disability Plans

Insurance programs that provide financial support to individuals unable to work due to lasting disabilities, covering a portion of their income.

Pre-Disability Income

The amount of regular income an individual was earning before experiencing a disability that led to a loss of earning capacity.

Pension Plans

Financial programs provided by employers, offering income to employees following retirement based on their earnings and years of service.

Privately Held Organizations

Companies owned by private individuals or groups and not traded publicly on the stock market.