Trading Down Refers to ________ When Repositioning a Product

question 2

Multiple Choice

Trading down refers to ________ when repositioning a product.

• A) reducing the number of features, qualities, or price
• B) reducing the amount of product carried as inventory
• C) reducing the number of product items in a product line
• D) redirecting marketing resources from a "cash cow" target market to one that is not performing as well in the hopes of increasing sales and profits
• E) encouraging consumers through the use of coupons and deals to purchase a firm's lower-priced products

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Definitions:

First-In, First-Out

An inventory valuation method that assumes the first items placed in inventory are the first sold.

Inventories

Assets held for sale in the ordinary course of business, in the process of production for such sale, or in the form of materials or supplies to be consumed in the production process.

Cost Of Production Report

A financial report detailing the total cost and production quantities of a manufacturing department or process.

Production

The process of creating goods or services using labor, machinery, and materials to meet consumer demand.